The pricing practice of establishing a price target first and then designing a product line that allows the firm to maximize total profit at that specific price point is called:

Goretti Co is a manufacturer of electronic goods. One electronic device it produces and sells is the Zeuz. Goretti Co wants to sell in a new market, the country of Hamman, and its objectives are to: 1) Set a minimum acceptable price which is most likely to discourage new entrants, and2) Shorten the initial period of the product life cycle in Hamman to reach the growth and maturity stages quickly. Which TWO of the following pricing strategies are most appropriate for Goretti Co to achieve its objectives? 1. Transfer pricing2. Market skimming3. Market penetration4. Relevant cost pricing5. Price discrimination by product version6. Complementary product pricing

Assertion (A): Free giveaways and buy-one-get-one (BOGO) sales are examples of penetration pricing. Reason (R): The manufacturer temporarily sacrifices profits to stimulate buyer interest and gain market adoption for a product.