Lysol sanitizing wipes entered the market at a low sale price and the product was supported by heavy couponing. As the initial trial period passed, the pricing slowly rose and the couponing became more infrequent. This activity is an example of penetration pricing.

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a low initial price for a product to attract customers and gain market share, then gradually increasing the price over time. The strategy described, involving low initial pricing and heavy couponing followed by price increases, fits the definition of penetration pricing.

Lysol Sanitizing Wipes Entered the Market at a Low Sale