Eula, a company that manufactures soda, offers its latest products at very low prices. Eula's strategy is based on the assumption that more customers will be willing to buy its products if they are offered at lower prices. Eula has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Eula has implemented the _____ strategy.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy where a company offers products at low prices to attract customers and increase market share, even if it means lower profits per sale.

Eula, a Company That Manufactures Soda, Offers Its Latest Products