The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.
A) market-skimming pricing
B) market-penetration pricing
C) value-added pricing
D) target costing
E) deceptive pricing

Question

Quizplus · Accepted Answer

Market-penetration pricing is a strategy that involves setting a low initial price to quickly attract a large number of buyers and capture a significant market share. This approach is often used by companies looking to enter a new market or compete with established players. The goal is to generate high sales volume, establish the company as a market leader, and drive competitors out of business.

The Strategy of Setting a Low Initial Price to Attract