A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share.
A)gray marketing
B)skimming
C)penetration
D)market holding
E)cost-based

Question

Quizplus · Accepted Answer

Penetration pricing strategy involves setting a low initial price for a product or service to quickly gain market share. The goal is to attract customers who are price-sensitive and encourage them to try the product. As market share increases, the price may be raised to generate more profit. This strategy is typically used when a company enters a new market or wants to compete aggressively with competitors.

A Market ________ Pricing Strategy Calls for Setting Price Levels