Penetration pricing _________________________________________________.
A) is successful in a market where consumers are price sensitive
B) sets a high price for new products in order to quickly pay back R&D costs
C) is not efficient in market share
D) is best applied to prestige products

Question

Quizplus · Accepted Answer

Penetration pricing is most successful in a market where consumers are price sensitive. In this strategy, a low price is set initially to attract buyers and gain market share quickly. This is particularly effective in markets where there is a high level of competition and consumers are price-sensitive.

Penetration Pricing _________________________________________________