Pure Products is introducing a new paper coffee filter at a dramatically reduced cost in order to obtain a market share.This is an example of:
A)skimming pricing.
B)penetration pricing.
C)psychological pricing.
D)cost-based pricing.

Question

Quizplus · Accepted Answer

This is an example of penetration pricing, where the company sets their prices lower than their competitors to gain a larger market share.

Pure Products Is Introducing a New Paper Coffee Filter at a Dramatically