All of the following are situations in which a penetration pricing strategy would be appropriate EXCEPT:

All of the following are situations in which a penetration pricing strategy would be appropriate EXCEPT:



A. Sales volume of the service is very sensitive to price

B. Economies in unit costs can be achieved by operating at large volumes

C. A service faces threats of strong potential competition very soon after introduction

D. There is no class of buyers willing to pay a higher price to obtain the service

E. The service is a major improvement over past services


Answer: E. The service is a major improvement over past services


Learn More :