Penetration pricing involves ________.
A) setting an initial low price to establish a new product in the market
B) setting a limited number of prices for certain categories of products
C) setting an initial high price to cover new product costs and generate a profit
D) setting prices solely to make a profit

Question

Quizplus · Accepted Answer

Penetration pricing involves setting an initial low price to establish a new product in the market, which aims to attract more customers, gain market share, and eventually increase sales and profits. It is a common strategy for new businesses or launching new products to penetrate a market with intense competition.

Penetration Pricing Involves ________