Which of the following statements regarding pricing constraints is most accurate?
A)When a product is in the introductory stage of the product life cycle, there is very little latitude in setting the initial price since consumers still don't know what the product can really do.
B)The newer a product and the earlier it is in its life cycle, the higher the price that can usually be charged.
C)The greater the number of products in a company's product line, the less the product features of similar products can affect price.
D)The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
E)To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

Question

Quizplus · Accepted Answer

Newer products in the early stages of their life cycle can often command higher prices due to their novelty and lack of competition.

Which of the Following Statements Regarding Pricing Constraints Is Most