Answer:
a. capture the high end of the market demand curve and lower introduction costs.
Explanation:
Penetration pricing strategy is an approach where a company seeks to gain market share of a new product by introducing the product at a lower price. The objective is to use the low price to make customers notice the new product. Penetration pricing aims at encouraging customers to try out the product, thereby creating a market for that product.
Penetration strategy is effective where other suppliers have similar goods and services. The marketer attempts to convince consumers to ignore other goods and buy his or her products. The strategy discourages more competitors from entering the market. Although the strategy grows sales rapidly, It's risky as customers may abandon the product should the business adjusts prices to make profits
Answer:
B. The lender would benefit.
Explanation:
Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.
Answer:
The potential problem with samples that could explain this connection is:
Causality.
Explanation:
There are different problems with samples and sampling, including sampling bias, sample size, and explaining causality between two variables. Sometimes, small sample sizes can be used to draw conclusions, but the larger the sample size, the better. Likewise, the elimination of sampling bias increases the accuracy of research conclusions. Most importantly, while a relationship or correlation may exist between two variables, it does not necessarily imply or explain that one variable causes the other.
Answer:
Inferior.
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of demand is given by the formula;
A good for which an inverse relationship exists between the demand for the good and income is an inferior good.