Penetration pricing is the most appropriate strategy when consumers are not price-sensitive.

Question

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Penetration pricing is a strategy where the price of the product is set low initially to gain market share, but it is not the most appropriate strategy when consumers are not price-sensitive. This is because when consumers are not price-sensitive, they will not be attracted to a low price and may even perceive it as a lack of quality or value. In such a situation, a higher price may be more appropriate to signal quality and value.

Penetration Pricing Is the Most Appropriate Strategy When Consumers Are