Penetration pricing strategy is generally characterized

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1. A penetration pricing strategy is generally characterized by:

- high inventory costs, many product alternatives, and low price elasticity.

- low costs, low prices, and mass market appeal.

- status, uniqueness, and profit goals.

- high price elasticity, early cash recovery objectives, and high brand loyalty.

2. Which of these products characteristics would lengthen (increase the number of intermediaries between manufacturer and consumer) a distribution channel (supply chain):

- product requires special handling equipment (e.g., blocks of ice).

- product is complex (e.g., computers).

- product is perishable (e.g., fresh fruit).

- product has low unit value (e.g., hard candy).

3. Which best characterizes a modified rebuy situation?

- purchasing paper clips for the office.

- purchasing the first local intranet for a small business.

- purchasing airline tickets under a new fare schedule.

- purchasing printer toner for a copier.

4. Which is an example of a product that is being sold in the business market?

- a thermometer to hang on the front porch of a school bus driver’s home.

- registration fee paid for a membership in a private health club.

- a mailbox to go in front of Pete’s new house.

- a truckload of sand to use on the beach being built for a lakefront resort.

Reference no: EM132265603

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