A new startup wants to gain as many users as possible to eventually pay for their service, once they understand the product's value to them. Their first pricing strategy should be one of ________ pricing and then switch to _________to further amass market share.
A)penetration/skimming
B)freemium/penetration
C)penetration/freemium
D)freemium/skimming

Question

Quizplus · Accepted Answer

Freemium pricing allows users to access basic features for free and then charges for premium features, which can attract a large user base initially. Penetration pricing involves setting a low price to enter the market and attract a large number of users quickly, which can be a subsequent strategy to convert free users to paying customers.

A New Startup Wants to Gain as Many Users as Possible