Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.
A) skimming
B) penetration
C) price leadership
D) cost-plus
E) dynamic

Question

Quizplus · Accepted Answer

A penetration pricing strategy is appropriate for Johnson Boats to quickly gain mass-market share in highly developed countries. This strategy involves setting a low price initially to attract a large number of buyers and gain market share quickly. This pricing strategy is suitable for mature markets where there is intense competition and price-sensitive customers. By setting a low price, Johnson Boats can quickly establish a foothold in the market and gain recognition for its new boat model. Once it establishes its brand and customer base, it can gradually increase prices.

Johnson Boats Wants to Introduce a New Model of Boat