The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied used a(n) ____ strategy in pricing these components.
A) odd-number
B) skimming
C) lining
D) penetration
E) psychological

Question

Quizplus · Accepted Answer

Allied Electronics used a penetration pricing strategy, which involves setting a low initial price to attract customers and gain market share. This strategy makes it difficult to raise prices later.

The Management at Allied Electronics Is Having Difficulty in Raising