Which of the following is a reason that a marketer would choose a penetration pricing strategy?
A) to ensure the company has the ability to increase prices once demand decreases
B) to focus on the rapid achievement of profit objectives
C) to appeal to different consumer segments with different levels of price sensitivity
D) to create markets for highly technical products
E) to discourage competition from entering the market

Question

Quizplus · Accepted Answer

Penetration pricing is often used to enter a market with a low price point to discourage potential competitors from entering the market. This strategy can make the market less attractive to others because of the lower profit margins.

Which of the Following Is a Reason That a Marketer