The penetration pricing strategy is most appropriate for a firm to pursue when:

Question

Quizplus · Accepted Answer

Penetration pricing is most effective in large markets where the goal is to attract a large number of customers quickly by setting a low initial price. This strategy helps in quickly increasing market share and is less effective in markets where customers are insensitive to price, where the firm's costs are high, or where the firm is focusing on differentiation rather than price competition.

The Penetration Pricing Strategy Is Most Appropriate for a Firm