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hemass market is penetration pricing, the exact opposite of skimmingpricing.b. The conditions favoring penetration pricing are:? Many segments of the market are price sensitive.? A low initial price discourages petitors from entering the market.? Unit production and marketing costs fall dramatically as productionvolumes increase.c. A firm using penetration pricing may:? Maintain the initial price for a time to gain profit lost from its lowintroductory level.? Lower the price further, counting on the new volume to generate thenecessary profit.d. Penetration pricing may follow skimming pricing:? A firm might initially price a product high to attract priceinsensitiveconsumers as well as recoup initial Ramp。拼一個春夏秋冬!贏一個無悔人生!早安!—————獻(xiàn)給所有努力的人.學(xué)習(xí)參考。s identity and meaning and to create a consumerbrand connection.20. Which of the following is a petitionbased pricing method?A. CustomaryB. PrestigeC. SkimmingD. Price liningE. Penetration pricingAns: aFeedback: Customary is a petitionoriented approach.Section 3: Essay Question (Total 40 Marks)1. (Total 10 points) For several years, the Ferrari has been known as the manufacturer of expensive, luxury automobiles. The pany plans to attract the major segment of the car buying market who purchases medium priced automobiles. As Ferrari considers this trading down strategy, what branding strategy would you remend? (5 points) What are the disadvantages or dangers to consider with your strategy? (5points) Answer: Trading down for Ferrari is very risky. The pany may lose the profitable, upper market who has purchased their expensive cars. Ferrari might develop a new car and choose a different Italian sounding brand name. The pany might promote it39。s economic infrastructure. The political system, while important is not included in the term economic infrastructure. satisfaction is an important focus for marketers because __________.A. marketing research is an inexpensive processB. the financial value of a retained customer can be significantC. customer value is a nonquantifiable statisticD. attracting new customers is easier than keeping old onesE. a market development strategy is preferable to a market penetration strategyAns: bFeedback: Research shows that a 5 percent improvement in customer retention can increase a pany39。. . . . .SECTION 1: True and False TOTAL20 marksFor each of the following, place a “T” if the statement is “true”, “F” if the statement is false. (20 marks, 2 marks/ Question) ___T__ 1. Competitive advantage is a unique strength relative to petitors, often based on quality, time, cost or, innovation.___F__2. Market share can be defined in both currency as well as in units sold. Because both ratios calculate market share, market share will be the same for a firm regardless which measurement is used.___F_ 3. A “highinvolvement purchase” usually involves a considerable amount of time researching the product and the product is a routine purchase. ___T_ 4. A pany engaged in environmental scanning is continually acquiring information on events occurring outside the organization to identify and interpre