A firm is most likely using a ________ pricing strategy when it introduces a product at a very low price to gain market share quickly.
A) razorblade
B) skimming
C) penetration
D) survival

Question

Quizplus · Accepted Answer

A penetration pricing strategy involves setting a low price for a new product or service to quickly gain market share. The goal is to attract customers away from competitors and build a customer base. This can be effective for new products entering the market or for established companies looking to introduce a new product line. Skimming pricing, on the other hand, involves setting a high price initially to target a smaller market segment with more disposable income. Razorblade pricing involves selling a product at a low cost and then making up for it with high-priced consumable parts. Survival pricing is a pricing strategy used by companies in financially difficult situations where they may temporarily reduce prices to stay afloat.

A Firm Is Most Likely Using a ________ Pricing Strategy