To maximize market share,a firm may use _____________ pricing,which is based on the theory that as sales volume increases,unit costs will decrease.
A) market-penetration
B) market-skimming
C) value pricing
D) demand pricing
E) price bands

Question

Quizplus · Accepted Answer

Market-penetration pricing is specifically aimed at attracting new customers and gaining market share. This is achieved by setting a lower price for a product or service compared to competitors in the industry. As sales volume increases with lower prices, the firm will benefit from economies of scale and unit costs will decrease. This allows the firm to maintain a competitive price while still earning a profit. Therefore, market-penetration pricing is the best choice for maximizing market share based on the given explanation.

To Maximize Market Share,a Firm May Use _____________ Pricing,which Is