Post Utme Veritas University 2020 Commerce Question 27

Practice objective / multiple choice question 27 from the 2020 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2020 Commerce Objective / Multiple Choice
Question 27 POST_UTME_VERITAS_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering two different marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Which of the following best describes the key difference between these two strategies?

Answer Options

A. High-low pricing targets a specific market segment, while penetration pricing targets a broader market.
Correct Answer B. High-low pricing involves setting a high initial price and then reducing it, while penetration pricing involves setting a low initial price and then increasing it.
C. High-low pricing is used for new products, while penetration pricing is used for established products.
D. High-low pricing is used for premium products, while penetration pricing is used for mass-market products.
Correct Answer
B
Correct Option:
High-low pricing involves setting a high initial price and then reducing it, while penetration pricing involves setting a low initial price and then increasing it.

About This Question

This is Post Utme Veritas University 2020 Commerce Question 27. It is one of the objective questions from the 2020 Post Utme Veritas University Commerce examination.

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