The following circumstances may arise in relation to the launch of a new product: (i) Demand is relatively inelastic. (ii) There are significant economies of scale. (iii) The firm wishes to discourage new entrants to the market. (iv) The product life cycle is particularly short. Which of the above circumstances favour a penetration pricing policy?
A、(ii) and (iii) only
B、(ii) and (iv)
C、(i), (ii) and (iii)
D、(ii), (iii) and (iv) only
A、(ii) and (iii) only
B、(ii) and (iv)
C、(i), (ii) and (iii)
D、(ii), (iii) and (iv) only
【参考答案及解析】
If demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.
If demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.