Which of the following strategies is involved with penetration pricing?
A) Setting an initial low price to establish a new product in the market
B) Setting an initial low price to cover new product costs and still generate a profit
C) Setting a limited number of prices for certain categories or products
D) Setting an initial high price to establish a new product in the market
E) Setting an initial high price to cover new product costs and still generate a profit.

Question

Quizplus · Accepted Answer

Penetration pricing involves setting an initial low price to establish a new product in the market. This is done to attract customers and gain market share quickly.

Which of the Following Strategies Is Involved with Penetration Pricing