The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________.
A) market-skimming pricing
B) market-penetration pricing
C) value-added pricing
D) target costing
E) deceptive pricing

Question

Quizplus · Accepted Answer

The initial strategy of setting low prices to quickly attract a large number of buyers and gain a larger market share is known as market-penetration pricing. This strategy is often used by firms in the early stages of entering a new market, with the aim of securing a foothold and gaining market share.

The First Target Store Opened in 1962