You have decided that one of the goals of your retail expansion is to establish a loyal customer base before the competition is able to do so.Therefore,when you enter a new trading area with a new product or service,you should use a _____ price strategy.

Question

Quizplus · Accepted Answer

A penetration pricing strategy involves setting prices low initially to attract a large customer base quickly. This allows the retailer to establish brand loyalty and gain a competitive advantage over other retailers who may try to enter the market. This strategy is effective in establishing a loyal customer base before the competition can do so, as stated in the question. Therefore, penetration pricing would be the best choice in this scenario.

You Have Decided That One of the Goals of Your