The purpose of a penetration pricing strategy during the introduction stage of the product life cycle is to:

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a low initial price to attract customers and gain market share quickly. This is particularly useful during the introduction stage of the product life cycle, where the focus is on building awareness and market acceptance. By offering a lower price than competitors, companies can not only attract price-sensitive customers but also encourage them to try the product and potentially become loyal customers in the future. This strategy can ultimately lead to increased profits and brand recognition in the long run.

The Purpose of a Penetration Pricing Strategy During the Introduction