A firm that introduces a new product at a low price to quickly gain market share and then gradually raises prices once market share is gained is using a _____ pricing strategy.
A) profit maximization
B) skimming
C) penetration
D) status-quo

Question

Quizplus · Accepted Answer

Penetration pricing strategy involves setting a low initial price to attract customers and gain market share quickly, then gradually increasing the price once the desired market share is achieved.

A Firm That Introduces a New Product at a Low