Which of the following statement is NOT true about a penetration strategy?
A) It uses a low-price core strategy
B) It is appropriate when fixed costs are high
C) It is more appropriate when initial sales lead to long-run customers' retention
D) It is most effective when high entry barriers exist
E) It attempts to get customers and establish a significant market share position as quickly as possible

Question

Quizplus · Accepted Answer

A penetration pricing strategy typically involves setting a low price to enter a competitive market and attract customers quickly. High entry barriers would actually make a penetration strategy less effective because the barriers could prevent the company from entering the market easily or achieving rapid market share growth.

Which of the Following Statement Is NOT True About a Penetration