Which of these statements about penetration pricing is most accurate?
A) Penetration pricing is a profit-oriented approach to pricing.
B) Penetration pricing is a cost-oriented pricing method.
C) Penetration pricing often encourages competitors to enter a market.
D) Penetration pricing is more effective for a price-sensitive market segment.
E) Penetration pricing usually precedes a skimming pricing.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy where prices are set low to attract a large number of customers quickly, making it effective for price-sensitive market segments.

Which of These Statements About Penetration Pricing Is Most Accurate