Joanne works in the marketing department of a toy manufacturer. Her company plans to introduce a new type of toy and wants to obtain a dominant market share while discouraging competitors from offering similar kinds of toys. The best strategy for achieving this goal would be:

Question

Quizplus · Accepted Answer

The best strategy for introducing a new product and obtaining a dominant market share while discouraging competitors is penetration pricing. This involves setting a relatively low initial price to attract customers and gain a large market share quickly. Once the product gains acceptance in the market, the company can gradually increase the price. This strategy can help the company discourage competitors who may find it difficult to match the lower price, causing them to lose market share or exit the market altogether.

Joanne Works in the Marketing Department of a Toy Manufacturer