If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use
A) penetration pricing.
B) random discounting.
C) captive pricing.
D) price skimming.
E) everyday low prices.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy where a company sets a low price for its products to quickly gain a large market share. In this case, Nabisco's reduced-fat snack crackers are a new product, and using penetration pricing would help it gain a larger market share quickly. The low price would attract price-sensitive customers who may be willing to try the new product, and if they like it, they may become loyal customers.

If Nabisco Wants to Quickly Gain a Large Market Share