Which of the following is the primary objective of penetration pricing?
A)to increase profit by increasing prices
B)to gain higher margins by reducing market share
C)to build sales volume in a market
D)to increase product differentiation
E)to increase price in order to reduce volumes

Question

Quizplus · Accepted Answer

The primary objective of penetration pricing is to build sales volume in a market by initially setting low prices to attract customers and gain market share. This strategy is used to encourage customers to try a new product or service and create brand loyalty.

Which of the Following Is the Primary Objective of Penetration