Market penetration would NOT be recommended when:
A) production and distribution costs fall as volume increases.
B) competitors can readily undercut low prices.
C) the market is sensitive to different price levels.
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

Market penetration involves setting low prices to attract customers and gain market share. However, if competitors can readily undercut those low prices, it becomes difficult to maintain market share and profitability. Therefore, market penetration would NOT be recommended in such a scenario. The other options listed do not necessarily preclude market penetration, and in fact, may even make it more attractive.

Market Penetration Would NOT Be Recommended When