The Manufacturer of a Fat-Free Ice Cream with the Consistency

Multiple Choice

The manufacturer of a fat-free ice cream with the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product.Which of the following conditions would argue against using a penetration pricing strategy?

A) The ice cream market demonstrates high levels of loyalty.
B) Economies of scale in production would be substantial.
C) Retailers are not willing to carry new brands of ice cream in the already overcrowded category.
D) Once the initial price is set,it is nearly impossible to lower the price without alienating early buyers.
E) Customers recognize the uniqueness of this patented production process.