Chapter 12 Questions

• During the introduction stage, efforts are made to increase primary demand.
• During the introduction stage, firms may chose a skimming pricing strategy.
• During the introduction stage, firms may chose a penetration pricing strategy.
• During the introduction stage, efforts are made to increase selective demand.
• Because of large initial investments, industry profits often go from negative to positive.

• Continual increases in price of manufacturer branded products with flat demand.
• Continual reduction in price of privately branded products with flat demand.
• Increase in the perceived quality of privately branded products.
• Increase in the promotional activity of privately branded products.
• Private brands offer retailers higher margins.