Oscar Mayer has recently developed a new snack product that's targeted to kids and young adults as a healthy, protein-based after-school or pre-dinner snack. They expect the product to complement their Lunchables product line and appeal to teen-age or college-age consumers who think of Lunchables as just for younger kids. In order to promote product trial and subsequent adoption, the company plans to use a relatively low entry price compared to the competition. What type of pricing strategy does Oscar Mayer plan to utilize?
A) Penetration
B) Everyday low pricing
C) Skimming
D) Competitive pricing

Question

Quizplus · Accepted Answer

Penetration pricing strategy involves setting a low price to enter a competitive market and attract customers quickly. Oscar Mayer's plan to use a relatively low entry price to promote product trial aligns with this strategy.

Oscar Mayer Has Recently Developed a New Snack Product That's