Penetration pricing refers to
A)charging different prices to different buyers for goods of like grade and quality.
B)setting the highest initial price that customers really desiring the product are willing to pay.
C)setting a low initial price on a new product to appeal immediately to the mass market.
D)setting a marketing price for product or product class oriented on a subjective feel for the competitors' price or market price as the benchmark.
E)setting prices a few dollars or cents under an even number.

Question

Quizplus · Accepted Answer

Penetration pricing is a pricing strategy in which a low initial price is set for a new product in order to attract a large number of buyers quickly and gain a large market share. This strategy is commonly used to appeal immediately to the mass market and can help to create brand awareness and initiate word-of-mouth marketing. Once the product gains traction, the price may be gradually increased.

Penetration Pricing Refers to