All of the following are situations in which a penetration pricing strategy would be appropriate EXCEPT:
A) Sales volume of the service is very sensitive to price
B) Economies in unit costs can be achieved by operating at large volumes
C) A service faces threats of strong potential competition very soon after introduction
D) There is no class of buyers willing to pay a higher price to obtain the service
E) The service is a major improvement over past services

Question

Quizplus · Accepted Answer

Penetration pricing is not suitable when the service is a major improvement over past services, as such improvements can justify a higher price point due to perceived added value.

All of the Following Are Situations in Which a Penetration