When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499,Amazon was using a __________ pricing strategy.
A)skimming
B)price lining
C)odd-even
D)penetration
E)loss-leader

Question

Quizplus · Accepted Answer

Amazon was using a penetration pricing strategy by setting a low price for its Kindle Fire tablet in order to attract a large number of customers and gain a foothold in the tablet market.

When Amazon Introduced the Kindle Fire Tablet Device at $199