When does a penetration pricing strategy tend to be most effective?
A) under unitary conditions
B) in price-sensitive markets
C) when the company can perform only small production runs
D) if unit costs are high

Question

Quizplus · Accepted Answer

Penetration pricing strategy tends to be most effective in price-sensitive markets where customers are more likely to switch brands based on price. This strategy helps to attract a large number of customers quickly and establish a strong market presence. It may not be as effective under unitary conditions, when the company can perform only small production runs, or if unit costs are high.

When Does a Penetration Pricing Strategy Tend to Be Most