Chocolate Concoctions, a maker of high-end chocolate candies, decided to price its boxes of candies below the long-term market price. The decision was made to increase market share and discourage other firms from entering the chocolate market. Chocolate Concoctions was implementing a
A) penetration pricing strategy.
B) price lining strategy.
C) price skimming strategy.
D) variable pricing strategy.

Question

Quizplus · Accepted Answer

Chocolate Concoctions is using a penetration pricing strategy by pricing their boxes of candies below the long-term market price in order to gain market share and discourage competition. This strategy involves setting a low price to enter a market and gradually increasing the price over time.

Chocolate Concoctions, a Maker of High-End Chocolate Candies, Decided to Price