Penetration pricing involves
A) setting prices in uneven dollar amounts.
B) setting an initial low price to establish a new product in the market.
C) taking advantage of the fact that consumers do not always respond rationally to stated prices.
D) setting an initial high price to cover new product costs and generate a profit.
E) setting a limited number of prices for certain categories of products.

Question

Quizplus · Accepted Answer

Penetration pricing involves setting an initial low price to establish a new product in the market. This strategy is often used to attract customers and gain market share quickly. Once the product is established, the price may be increased.

Penetration Pricing Involves