A penetration pricing strategy is likely where a company_______.
A)seeks to dominate the market
B)seeks to create a barrier to entry for competitors
C)seeks to dominate the market and to create a barrier to entry for competitors
D)none of the above

Question

Quizplus · Accepted Answer

A penetration pricing strategy involves setting the price of a product lower than the competitors' prices to quickly gain market share. This approach can help a company dominate the market by attracting a large number of customers quickly. Additionally, by setting prices low, it can create a barrier to entry for potential competitors, as they may find it difficult to compete on price without incurring losses.

A Penetration Pricing Strategy Is Likely Where a Company_______