Penetration pricing is appropriate when,in addition to a large market,the firm's costs are low compared to competitors' and the SBU is pursuing a low-cost strategy.

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Penetration pricing is a strategy where a company sets a low price for its products or services initially to gain a large market share quickly. It is an appropriate strategy when the firm has low costs compared to its competitors and is pursuing a low-cost strategy. This allows the firm to attract price-sensitive customers and build a strong customer base. However, penetration pricing may not be sustainable in the long run, and the company may have to eventually increase prices to cover its costs and make profits.

Penetration Pricing Is Appropriate When,in Addition to a Large Market,the