When a Firm Introduces a New Product at a Relatively

Multiple Choice

When a firm introduces a new product at a relatively low price because it hopes to reach the mass market,it is following a _____ strategy.The low price is designed to capture a large share of a substantial market and produce lower production costs.

A) penetration pricing
B) price-insensitive demand
C) price-skimming
D) price elasticity
E) cost bundling