Pure Products is introducing a new paper coffee filter at a dramatically reduced cost.Pure Products expects that competitors will come out with similar products within a short period of time.Which pricing strategy will enable Pure Products to discourage competitors?
A) Skimming pricing
B) Penetration pricing
C) Psychological pricing
D) Cost-based pricing

Question

Quizplus · Accepted Answer

Penetration pricing is a pricing strategy where a company sets a low price for its product or service to attract customers and gain market share. This strategy aims to discourage competitors from entering the market by making it difficult for them to match the low prices while maintaining profits. Therefore, in this case, Pure Products should choose penetration pricing to discourage competitors from entering the market.

Pure Products Is Introducing a New Paper Coffee Filter at a Dramatically