Penetration pricing is a way to:
A) raise a rival's marginal cost.
B) lower a rival's input costs.
C) increase a rival's fixed costs.
D) gain a critical mass of customers.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy where a company sets a low price for its products or services initially in order to attract a large number of customers and gain a foothold in the market. The goal is to create a critical mass of customers who will then spread the word about the product or service, leading to more sales over time. This strategy can help the company establish itself in the market and build a customer base quickly. Therefore, gaining a critical mass of customers is the best choice among the options given.

Penetration Pricing Is a Way To