____ is the pricing of a new product at a low initial price to build market share quickly.
A)Penetration pricing
B)Predatory pricing
C)Price skimming
D)Target costing

Question

Quizplus · Accepted Answer

Penetration pricing is the pricing of a new product at a low initial price to build market share quickly. This is often used when a company is entering a new market or introducing a new product and wants to attract customers away from established competitors by offering a lower price.  Predatory pricing is the pricing of goods or services at such a low level that other competitors cannot compete and are driven out of business. Price skimming is the pricing strategy of setting a high price initially and then gradually lowering it over time as the market matures. Target costing is a cost management tool used to determine the maximum amount of cost that can be incurred on a product, given the selling price and desired profit margin.

____ Is the Pricing of a New Product at a Low