Many credit cards offer so-called "teaser" rates-low introductory rates that rise after a few months. What pricing strategy is the use of introductory rates an example of?
A) penetration
B) skimming
C) everyday low
D) competitive

Question

Quizplus · Accepted Answer

Penetration pricing strategy involves setting a low price to enter a competitive market and attract customers. The use of low introductory rates on credit cards is an example of this, as it aims to draw in customers initially with attractive rates before increasing prices later on.

Many Credit Cards Offer So-Called "Teaser" Rates-Low Introductory Rates That