All of the following conditions support market-penetration pricing EXCEPT which one?
A)The market must be highly price sensitive.
B)Production and distribution costs must fall as sales volume increases.
C)The product's quality and image must support the price.
D)The low price must help keep out the competition.
E)A low price will produce more market growth.

Question

Quizplus · Accepted Answer

Market-penetration pricing typically involves setting a low price to gain market share quickly, and the other conditions listed all support this strategy. However, if the product's quality and image do not support the low price, it may actually harm the brand and reduce the effectiveness of market-penetration pricing. Therefore, option C is the exception.

All of the Following Conditions Support Market-Penetration Pricing EXCEPT Which