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      Question

      Penetration pricing is used

      to:
      A Recover development costs quickly Correct Answer Incorrect Answer
      B Enter the market rapidly Correct Answer Incorrect Answer
      C Signal premium positioning Correct Answer Incorrect Answer
      D Maximise short-term profits Correct Answer Incorrect Answer
      E Avoid competition Correct Answer Incorrect Answer

      Solution

      Penetration pricing involves low initial prices to quickly gain market share and discourage competitors.

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