A car company introduces a new car in the market.It maintains a low introductory price to reach the middle-income group.The main objective of the company is to build sales and profits quickly.This is an example of:
A)everyday low pricing.
B)external reference price.
C)high/low pricing.
D)market penetration pricing.
E)internal reference price.

Question

Quizplus · Accepted Answer

The scenario describes market penetration pricing, which involves setting a low price to quickly gain market share and attract price-sensitive customers. The goal is to maximize sales and profits in the short-term. This is different from everyday low pricing, where the price is consistently low over time, and high/low pricing, where the price alternates between high and low promotions. External reference price and internal reference price are not applicable in this scenario.

A Car Company Introduces a New Car in the Market