Which pricing strategy is proper when customers are highly sensitive to price,low prices discourage actual and potential competition,and total retail costs do not increase as much as sales volume increases?
A)early recovery of cash
B)market skimming
C)selling against the brand
D)market penetration

Question

Quizplus · Accepted Answer

Market penetration is the best pricing strategy when customers are highly sensitive to price, as it involves setting a low price to attract a large number of customers and increase sales volume. Additionally, low prices discourage potential competitors from entering the market, as they may not be able to compete on price. Finally, since total retail costs do not increase as much as sales volume increases, market penetration allows for higher profitability through the increased sales volume.

Which Pricing Strategy Is Proper When Customers Are Highly Sensitive