To maximize market share, a firm may use ________ pricing which sits on the theory that as sales volume increases, unit costs will decrease.
A) value pricing
B) market-penetration
C) price bands
D) market-skimming
E) demand pricing

Question

Quizplus · Accepted Answer

Market-penetration pricing is the strategy that involves offering the product at a low price to gain a high market share. It is based on the assumptions that as sales volume increases, unit costs will decrease due to economies of scale. This pricing strategy aims to attract a large number of customers and increase sales quickly, which can help the firm establish itself in the market and drive out competitors.

To Maximize Market Share, a Firm May Use ________ Pricing