Which of the following is the primary difference between introductory price dealing and low penetration price policy?
A) Introductory price dealing targets the top of the demand curve while low penetration price policy targets the bottom of the demand curve.
B) Low penetration price policy targets the top of the demand curve while introductory price dealing targets the bottom of the demand curve.
C) In introductory price dealing the price continuously moves down the demand curve while it is static in low penetration price policy.
D) In the low penetration price policy the price is fixed as opposed to introductory price dealing where the price varies according to the customer's ability to pay.
E) In introductory price dealing the price rises after the introductory offer while it remains unchanged in low penetration price policy.

Question

Quizplus · Accepted Answer

Introductory price dealing typically involves a temporary price reduction to attract customers initially, after which prices are raised to normal levels. In contrast, low penetration pricing involves setting a low price from the outset to quickly attract a large number of customers and achieve a high market share, with the intention of maintaining this low price level.

Which of the Following Is the Primary Difference Between Introductory