Which of the following situations is the most compelling case for market-penetration pricing?
A) Economies of scale cannot be achieved in the existing market.
B) A large mass market exists for the product.
C) The product has a highly inelastic demand.
D) No competition currently exists.
E) All of the above cases are suitable for market-penetration pricing.

Question

Quizplus · Accepted Answer

Market-penetration pricing is most effective in situations where a large mass market exists for the product. This strategy involves setting a low initial price to attract a large number of buyers quickly and secure a significant market share, which is more feasible in a large market.

Which of the Following Situations Is the Most Compelling Case