Gomez is pricing his products at a lower than normal, long-range market price in order to gain more rapid market acceptance. He is using a ____ strategy.
A) variable pricing
B) skimming price
C) penetration pricing
D) price lining

Question

Quizplus · Accepted Answer

Gomez is using penetration pricing, which involves setting a lower price for a product in order to quickly gain market share and acceptance. This is often used by businesses entering a new market or introducing a new product, as it helps establish a foothold and generate buzz. Skimming price involves setting high prices initially for a new product with limited competition, while variable pricing involves adjusting prices based on different factors such as demand or seasonality. Price lining involves offering different price points for different product versions or features.

Gomez Is Pricing His Products at a Lower Than Normal