Which of the following pricing strategies sets the initial price low for the introduction of a new product or service, with the objective of building sales, market share, and profits quickly?
A)Market development pricing
B)Market extension pricing
C)Market establishment pricing
D)Market testing pricing
E)Market penetration pricing

Question

Quizplus · Accepted Answer

Market penetration pricing sets a low initial price to quickly penetrate the market and gain market share. This strategy helps to build sales volume and capture a large customer base rapidly. As sales and brand awareness increase, the company can gradually increase the price to achieve profitability.

Which of the Following Pricing Strategies Sets the Initial Price