A Penetration Pricing Policy Is Most Likely to Be Effective

Multiple Choice

A penetration pricing policy is most likely to be effective when

A) unit production and marketing costs fall dramatically as production volumes increase.
B) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.
C) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
D) the high initial price will not attract competitors.
E) customers interpret the high price as signifying high quality.