Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases components and uses small assembly factories in Shenzhen, in southern China. These smartphones retail for about $65 in U.S. dollars, much less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Here, Xunrui Communications most likely is using which pricing strategy?

Question

Quizplus · Accepted Answer

Xunrui Communications is using penetration pricing strategy, where they are offering low-priced products to penetrate the market and gain market share.

Xunrui Communications Is an Upstart Maker of Inexpensive Smartphones for the Chinese