Lavender Inc., a Canadian apparel company, recently opened its stores across major cities of Miledina, a country in South America. Lavender set its products at very low prices to get customers in Miledina to try its products. This pricing strategy enabled Lavender to gain a considerable market share in Miledina. Given this information, it can be said that Lavender followed a _____.

Question

Quizplus · Accepted Answer

Lavender Inc. used a penetration pricing strategy by setting low prices to enter the market and attract customers, aiming to gain a significant market share quickly.