____________ is setting the price lower than competing brands in order to enter a market and quickly gain a significant share of the market.
A) Price skimming
B) Premium pricing
C) Penetration pricing
D) Bait pricing
E) Captive pricing

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a lower price than competing brands in order to quickly gain a significant share of the market. This strategy is often used by new entrants to a market who are trying to establish themselves and gain market share quickly. Penetration pricing can help the company attract customers away from competitors who are charging higher prices, and can also help to generate buzz and excitement about the new brand. Once the brand has gained a foothold in the market, it may gradually raise its prices or introduce higher-priced products to generate more revenue.

____________ Is Setting the Price Lower Than Competing Brands in Order