--%>
Assignment Help - homework help

What are the reasons for adopting penetration price strategy

What are the reasons for adopting penetration price strategy?

E

Expert

Verified

Reasons for adopting Penetration price strategy are as follows:

1. Product consists of high price elasticity in the first stage.

2. The product is accepted through huge number of customers.

3. Economies of large scale production obtainable to firm.

4. Potential market for the product is huge.

5.  Cost of production is low.

6. For introducing product in market.

7. For discouraging new competitors.

8. Most of the prospective consumers are within low income class.

   Related Questions in Managerial Economics

  • Q : Forecasting demand what are the

    what are the criteria for good forecasting

    		•
  • Q : Average Variable Cost Profit

    A purely competitive firm which hires more workers while the value of the marginal product of labor increases above the competitively set wage rate will absolutely experience increases in its: (i) overhead costs. (ii) profit per unit.

    		•
  • Q : Wage rate paid for raises labor When

    When the wage rate paid for labor raises, in that case the: (1) supply of labor increases (2) opportunity cost of leisure rises. (3) workers always supply more labor. (4) level of national income increases. (5) opportunity cost of leisure falls.

    		•
  • Q : Value of the Marginal Product and

    When a firm is a price taker in the sale of its product, in that case labor’s: (w) ARP (Average Revenue Product) = MRP. (x) ARP = VMP. (y) VMP > MRP. (z) VMP = MRP. Can someone explain/help me with best so

    		•
  • Q : Trent projection statistical method of

    Explain the Trent projection statistical method of Demand Forecasting.

    		•
  • Q : Define the some criticized highlight

    Define the some criticized highlight points of Adam Smith?

    		•
  • Q : Illustrate signalling by example If

    If interviewing for a job like a bill collector for a loan shark, Bob mentions his degree into martial arts by the Hard Knox Reformatory, his summer internship along with BreakUrLegs, Inc., as well as his family links. Bob’s casual discussion of such credentials

    		•
  • Q : Employment Screening If job applicants

    If job applicants are asked for letters of recommendation and copies of their college transcripts, in that case a firm is practicing: (1) wage discrimination. (2) employment screening. (3) job signaling. (4) a structural employment system (5) credentialism.

  • Q : Supply of Labor to Competitive Firms

    For a firm hiring through a purely competitive labor market, in that case the supply of labor is: (w) greater than the MRC. (x) less than the MRC. (y) the same as the MRC. (z) vertical to parallel the wage rate.

    Q : Illustrates the Barometric technique of

    Illustrates the Barometric technique of Demand Forecasting?

    		•