The strategy of setting a low price for a new product to gain a large market share for the product quickly is called
A) penetration pricing.
B) price skimming.
C) sample pricing.
D) introductory pricing.
E) odd pricing.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy used to quickly gain market share by setting a low price for a new product. This encourages consumers to purchase the product, ultimately leading to increased demand and potentially long-term profitability. This strategy is commonly used by businesses looking to quickly establish themselves in a competitive market or by businesses launching a new product that they believe will have strong demand but may face initial resistance due to existing competitors.

The Strategy of Setting a Low Price for a New