After entering a market by using market-penetration pricing, a company can easily raise its price and maintain its market share.

Question

Quizplus · Accepted Answer

Market-penetration pricing is a strategy used by companies to gain market share by setting lower prices than their competitors. Once the company has established a customer base, it may be difficult to raise prices without losing some customers to competitors offering lower prices. Therefore, it is not easy to maintain market share while raising prices after using market-penetration pricing.

After Entering a Market by Using Market-Penetration Pricing, a Company