Fickles Co.Ltd.uses a low price to enter the market with its newly launched product, Fickles Fruit Pickles.This strategy is called a _____ strategy.
A)yield management pricing
B)price skimming
C)penetration pricing
D)prestige pricing

Question

Quizplus · Accepted Answer

This is an example of a penetration pricing strategy.If a company uses a low price to enter the market, this is referred to as a penetration pricing strategy and is used to encourage rapid acceptance of an innovation or to combat a competitive threat.