A marketer would most likely use a penetration pricing strategy to ________.
A) ensure that the firm can increase prices once demand decreases
B) appeal to customers with low price sensitivity
C) gain long-term advantages of scale
D) minimize the risk of substitution

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy used to enter a market with a low initial price to attract customers quickly, build market share, and achieve cost advantages through scale. As the company sells more, it can lower production costs due to economies of scale, thus gaining long-term advantages.

A Marketer Would Most Likely Use a Penetration Pricing Strategy