Which of the following statements about penetration pricing is most accurate?
A) Penetration pricing is a profit-oriented approach to pricing.
B) Penetration pricing is a cost-oriented pricing method.
C) Penetration pricing encourages competitors to enter a market.
D) Penetration pricing is more effective for a price-sensitive market segment.
E) Penetration pricing usually precedes a skimming pricing.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy used to attract customers to a new product or service by offering a low price initially. It is particularly effective in price-sensitive markets where consumers are more likely to respond to lower prices.

Which of the Following Statements About Penetration Pricing Is Most