A firm is using a(n) ________ strategy when it introduces a product at a very low price to quickly generate sales volume or market segment penetration.
A) skimming pricing
B) competitive pricing
C) intensive pricing
D) penetration pricing
E) price bundling

Question

Quizplus · Accepted Answer

Penetration pricing refers to the strategy used by firms to introduce a product at a low price initially to capture a large market share quickly. This strategy is often used to attract price-sensitive customers who are more likely to switch to a new product that is priced lower than the competitors. The idea is to establish a foothold in the market and build brand recognition, which can then be used to increase prices gradually.

A Firm Is Using A(n) ________ Strategy When It Introduces