A market-penetration pricing policy should LEAST likely be used for a new product when ________.
A) the market is highly price sensitive
B) production and distribution costs fall as sales volume increases
C) the product's quality and image support a high price
D) a high price helps keep out the competition
E) there are few or no competitors in the market

Question

Quizplus · Accepted Answer

A market-penetration pricing policy involves setting a low price to quickly gain market share, which is not suitable if the product's quality and image support a high price. In such a case, premium pricing would be a more appropriate strategy to signal the product's quality and value to customers.

A Market-Penetration Pricing Policy Should LEAST Likely Be Used for a New