When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price-sensitive. Hallmark was using a(n) __________ pricing strategy.
A)prestige
B)skimming
C)target ROI
D)penetration
E)experience-curve

Question

Quizplus · Accepted Answer

The 99-cent pricing strategy introduced by Hallmark is an example of a penetration pricing strategy. This entails setting a low price to enter a new market or to increase market share. The goal of a penetration pricing strategy is to attract price-sensitive customers and gain a foothold in the market.

When Hallmark Cards Introduced a Line of 99-Cent Cards (About