The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?
A) Price skimming
B) Penetration pricing
C) Odd-even pricing
D) Prestige pricing
E) Psychological pricing

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a relatively low price for a new product to attract customers and gain market share. Given the expected competition, this pricing strategy would be appropriate for the Oral-B electric plaque remover to quickly establish itself in the market and compete with other similar products. Once the product gains a foothold in the market, the company can gradually increase the price.

The Maker of Oral-B Toothbrushes Is Introducing a New Electric