Which of the following is NOT an example of a price?
- a commission
- a wage
- an allowance
Sjcam used a penetration pricing strategy to introduce its Legend action camera to compete with the latest GoPro offering. Which of the following conditions would argue for using a penetration pricing strategy when introducing this new camera?
- A large potential market exists, even at a high price.
- Technological problems still exist for competitors, prohibiting their entry into the market for at least six months.
- Increasing volume substantially reduces production costs.
- Consumers perceive a price-quality relationship.
- The product is relatively price insensitive (price inelastic).
Uber and Lyft customers often complain about the practice of "surge" or "prime-time" pricing used by these companies during periods of peak demand. This is an example of a __________ pricing policy.