Setting low prices when new products are introduced to increase market share is known as:
A)peak-load pricing
B)price skimming
C)penetration pricing
D)price discrimination

Question

Quizplus · Accepted Answer

Penetration pricing is the strategy of setting low prices when new products are introduced to increase market share. This strategy is used to attract customers and gain a foothold in the market. As the market share increases, prices can be gradually increased.

Setting Low Prices When New Products Are Introduced to Increase