Tanya would like to gain market share rapidly so she has priced her product at a lower than normal, long-range market price. Which of the following strategies is Tanya using?
A) Variable pricing
B) Price skimming
C) Price lining
D) Penetration pricing

Question

Quizplus · Accepted Answer

Tanya is using the strategy of penetration pricing, which involves setting a low price to gain market share quickly. This is different from price skimming, which involves setting a high price initially and then gradually lowering it over time. Variable pricing involves adjusting prices based on different factors such as time of day or demand, while price lining involves offering products at different price points based on their features or quality.

Tanya Would Like to Gain Market Share Rapidly So She