A new soft drink company sells their cola product at $0.25 a bottle in vending machines, rather than the traditional $1.50 per bottle of the same size. This is an example of:
A)skimming pricing.
B)price lining.
C)penetration pricing.
D)odd-even pricing.

Question

Quizplus · Accepted Answer

This is an example of penetration pricing, as the company is setting a low price to enter and gain market share in the highly competitive soft drink industry.

A New Soft Drink Company Sells Their Cola Product at $0.25