If a market penetration pricing strategy results in lower per-unit cost,competitors might be discouraged from entering the market because
A) selective consumer demand will increase gross profit margins.
B) a high/low cost-based pricing strategy will not work.
C) they would likely need to quickly produce a large volume in order to compete.
D) profits would increase too rapidly.
E) they would be able to advertise only to the same target market as the firm that introduced the original product.

Question

Quizplus · Accepted Answer

Lower per-unit cost due to market penetration pricing strategy can result in a need for competitors to quickly produce a large volume in order to compete, which can be discouraging for them.

If a Market Penetration Pricing Strategy Results in Lower Per-Unit