Mario is the first retailer in town to sell games for Sony's new PlayStation 3 machine. Mario wants to quickly capture as much of the market for the new games as possible. Mario will likely use a __________ pricing strategy.
A) market penetration
B) bundling
C) price fixing
D) reference
E) skimming

Question

Quizplus · Accepted Answer

A market penetration pricing strategy involves setting a low price to quickly capture a large share of the market. This approach is commonly used for new products, as it helps to build a customer base and establish a strong market position. In this case, Mario is the first retailer in town to offer games for the PlayStation 3, so he may want to set a low price to encourage customers to purchase from him rather than waiting for other retailers to start offering the games.

Mario Is the First Retailer in Town to Sell Games