Penetration pricing strategies are more likely in which of the following situations:
A)Where the company is seeking to dominate the market
B)Where they are comfortable to establish a position in the market initially and make money later
C)Where they seek to create a barrier to entry by competitors
D)All of the above situations are more likely

Question

Quizplus · Accepted Answer

Penetration pricing strategies are more likely in all of the above situations. When a company uses a penetration pricing strategy, it typically involves setting a low price initially to enter the market and capture market share quickly. This may allow the company to dominate the market, establish a position in the market, and create a barrier to entry for competitors. However, it is important to note that this strategy may not always result in immediate profits but rather a long-term gain.

Penetration Pricing Strategies Are More Likely in Which of the Following