A razor manufacturer introduces its new three-blade razor at a relatively low price to counter competition and to encourage more consumers to purchase it.Through this approach to pricing,the razor manufacturer hopes to create a rapid mass market within a short span of time and obtain large economies of scale.This is an example of _____.
A)a penetration policy
B)cost-plus pricing
C)bundle pricing
D)a skimming policy

Question

Quizplus · Accepted Answer

The razor manufacturer is introducing the new product at a low price to encourage more consumers to purchase it and create a rapid mass market. This strategy is known as penetration pricing, which involves setting a low price to penetrate the market quickly and gain a large market share. It is commonly used by companies to introduce new products and create brand awareness.

A Razor Manufacturer Introduces Its New Three-Blade Razor at a Relatively