Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?
A) The product's quality supports its high price.
B) Alternative products can enter the market easily.
C) The market for the product is highly price sensitive.
D) Prices increase incrementally as sales volume increases.
E) Production costs rise with an increase in marketing efforts.

Question

Quizplus · Accepted Answer

Market-penetration pricing strategy involves setting a low price for a new product to attract a large number of customers quickly and gain a significant market share. This strategy is most effective in a price-sensitive market where customers are willing to switch brands for a lower price. Therefore, option C is the correct choice. Options A, B, D, and E are not essential for implementing a successful market-penetration pricing strategy.

Which of the Following Conditions Is Most Likely Essential for Implementing