A firm is using a(n) ________ strategy when it introduces a product at a very low price to gain market share early on.
A) skimming price
B) trial pricing
C) intensive pricing
D) penetration pricing
E) high/low

Question

Quizplus · Accepted Answer

Penetration pricing is a pricing strategy wherein a firm introduces its product at a very low price with the aim of gaining a significant market share early on. This strategy is especially useful in highly competitive markets, and it encourages customers to try the product, therefore creating a large customer base quickly.

A Firm Is Using A(n) ________ Strategy When It Introduces