Which of the following statements is true of penetration pricing?
A) Penetration pricing makes sense only in categories that have a significant group of consumers who would be willing to pay a premium.
B) Penetration pricing involves increasing product prices to target upscale consumers.
C) A company using penetration pricing makes profit from the volume of sales.
D) A company using penetration pricing gains a very high profit on each individual sale.

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a low price to attract a large number of customers and gain market share, with the profit coming from the high volume of sales rather than high margins on each sale.

Which of the Following Statements Is True of Penetration Pricing