Salon Selectives introduced its line of Botanical Blends for consumers who were looking for a way to create hair that looked like it had come from a salon, but didn't smell like it. Since there are several existing hair care products already targeted to the same market, Salon Selectives should initially use a _____ pricing strategy.
A) market-penetration
B) market-absorption
C) market-skimming
D) cost-plus
E) marginal-cost

Question

Quizplus · Accepted Answer

A market-penetration pricing strategy is appropriate for Salon Selectives in this scenario because it involves setting a low initial price to attract a large number of buyers quickly and win a large market share, especially in a market with several existing competitors.

Salon Selectives Introduced Its Line of Botanical Blends for Consumers