A penetration strategy tends to be effective in a price-sensitive market.Thus,one of the purposes of penetration pricing is to:
A) recoup product development costs quickly
B) discourage competitors from entering the market
C) produce a large margin of profit per unit
D) develop exclusive distribution
E) attract the price-insensitive buyer who demands the latest in technology

Question

Quizplus · Accepted Answer

A low price will mean a low profit margin and will only be attractive if a large volume of business can be seized.The first company on the market that uses penetration pricing has a great advantage.

A Penetration Strategy Tends to Be Effective in a Price-Sensitive