Post Utme Bowen University 2022 Commerce Question 20

Practice objective / multiple choice question 20 from the 2022 Post Utme Bowen University Commerce examination.

Post Utme Bowen University 2022 Commerce Objective / Multiple Choice
Question 20 POST_UTME_BOWEN_UNIVERSITY • 2022 • COMMERCE • objective

A firm is considering two different pricing strategies: a penetration pricing strategy and a skimming pricing strategy. Which of the following is a key difference between the two strategies?

Answer Options

A. Penetration pricing strategy involves setting a high initial price to maximize profits, while skimming pricing strategy involves setting a low initial price to attract customers.
Correct Answer B. Penetration pricing strategy involves setting a low initial price to attract customers, while skimming pricing strategy involves setting a high initial price to maximize profits.
C. Penetration pricing strategy is more effective than skimming pricing strategy.
D. Skimming pricing strategy is more effective than penetration pricing strategy.
Correct Answer
B
Correct Option:
Penetration pricing strategy involves setting a low initial price to attract customers, while skimming pricing strategy involves setting a high initial price to maximize profits.

About This Question

This is Post Utme Bowen University 2022 Commerce Question 20. It is one of the objective questions from the 2022 Post Utme Bowen University Commerce examination.

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