Leupold & Stevens, Inc., makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance for which Leupold & Stevens is famous, at a price much lower than it has ever sold a rifle scope before. The new scope offers several different magnifications and is the only scope in the $200 range that is made in Canada. Which pricing strategy is Leupold & Stevens using to appeal to a larger market?

Question

Quizplus · Accepted Answer

Leupold & Stevens is using penetration pricing, which means setting a low price to enter a new market and attract a larger customer base. By offering a scope with the same quality and performance as their higher-priced options at a lower price, they are aiming to capture a larger share of the market.