Penetration pricing assumes that a low price will attract new buyers.

Name: Penetration pricing assumes that a low price will attract new buyers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Penetration pricing strategy involves setting a low price for a newly-launched product to increase its market share and attract new customers. The hope is that the low price will create a buzz and encourage customers to try the product. Once the product gains some market share, the company can gradually raise the price to increase profits.

Penetration Pricing Assumes That a Low Price Will Attract New