The Library is a new bar in town.Unlike the other bars in town, it charges no cover charge.The new bar has also priced its beer at $3 less per pitcher than its competition.Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?
A)price skimming
B)penetration pricing
C)market share pricing
D)limited value pricing
E)low-ball pricing

Question

Quizplus · Accepted Answer

The owner is using penetration pricing by setting lower prices than competitors to attract customers and gain market share. Charging no cover charge and pricing beer at $3 less per pitcher than the competition are strategies to penetrate the market by offering more attractive prices to consumers.

The Library Is a New Bar in Town