Wrigley introduced a new flavor of Orbit brand sugar-free chewing gum, mint mojito, and its introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used
A) skimming pricing.
B) penetration pricing.
C) price lining.
D) odd-even pricing.
E) loss-leader pricing.

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a low initial price to attract customers and gain market share quickly, which is what Wrigley did with the mint mojito flavor.

Wrigley Introduced a New Flavor of Orbit Brand Sugar-Free Chewing