When Sports Paradise saw yet another sports bar open up across the street it knew that it would have to lower its price again to stay in business.The city already had too many sports bars and Sports Paradise intended on being one of those left after the inevitable shake out.Sports Paradise will be following a _____ pricing strategy.
A) penetration
B) skimming
C) survival
D) predatory

Question

Quizplus · Accepted Answer

Sports Paradise is trying to survive in a competitive market and is lowering its prices to stay competitive. This is a survival pricing strategy. Penetration pricing involves setting low prices to enter a new market or gain market share, skimming pricing involves setting high prices initially for a new or unique product, and predatory pricing involves intentionally setting low prices to drive out competitors.

When Sports Paradise Saw Yet Another Sports Bar Open Up