Penetration Pricing Policy Is MOST LIKELY to Be Effective When

Multiple Choice

penetration pricing policy is MOST LIKELY to be effective when

A) lowering the price has only a minor effect on increasing sales volume and reducing unit costs.
B) the high initial prices do not attract competitors.
C) a low initial price discourages competitors from entering the market.
D) customers interpret high price as signifying high quality.
E) customers are willing to buy immediately at the high initial price.