Answered Essay: According to the sales video: "Handling the 'I want to think about it' Stall, " the trainer queried the prospect on the

According to the sales video: “Handling the ‘I want to think about it’ Stall, ” the trainer queried the prospect on the reason(s) or most critical reason for wanting to think about purchasing the Harley bike for a few more days. T/F? TXT: Managers may follow a price skimming strategy when production cannot be expanded rapidly because of technological difficulties, shortage, or other production constraints. T/F? CD: If the Google advertising for MedReady is targeting the “40 to 65” age segment, it makes sense to stick to generic adwords such as pill box and medicine container, but avoid buying keywords such as prescription dispenser and timer so as not to turn off the younger audience. T/F? TXT/Narrated PP: Penetration pricing makes sense if A. Potential competitors can be discouraged from entering the market because of the small profit cushion. B. An experience curve will cause costs per unit to drop significantly. C. The seller is operating in a price-sensitive market D. Economies of scale will lower production costs. E. All of the above. TXT/Narrated PP: The more expensive ($429) Williams-Sonoma bread maker probably served as a reference price to the $279-model (that sold well after the $429-model was introduced). T/F? TXT: A 2014 MIT study found that passengers of premier airlines complain about service failures ten times more than do customers of low-cost airlines because premium airlines allow more checked bags per passenger. T/F? CH 16: In cooperative advertising, the manufacturer and the retailer split the costs of advertising the manufacturer’s brand. T/F? PP: Based on the Facebook Tutorial (YouTube link in a PowerPoint), the options for “objective for your campaign” include all EXCEPT A. Send people to your website B. Increase conversions on your website C. Get installs of your app D. Reach people near your business E. No Exceptions. All are included.

Expert Answer

5. False, the price skimming strategy is used when the product is newly launched in the market and the producer wants to earn initial profit by pricing the product at very high price , which the buyers are ready to buy . Generally these products are those which form the status symbol and premium price is acceptable to certain buyers. Apple company used this strategy while launching apple iphones. Skimming pricing strategy helps the company in earning profits from the early stages of the product launch and gradually the price of the product is decreased as it makes a market for itself.

Thus, false.

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