Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?
A)penetration strategy
B)odd-even pricing strategy
C)skimming strategy
D)price lining strategy

Question

Quizplus · Accepted Answer

A penetration strategy involves offering a low price to attract a large number of customers, with the goal of gaining market share and discouraging competitors. This pricing strategy may not maximize profits in the short-term, but it can be effective in establishing a strong position in the market and building customer loyalty. Odd-even pricing is when goods are priced at an odd or even number to create a perception of value. Skimming involves pricing a product high initially and then gradually lowering the price over time. Price lining is a strategy where products are grouped into specific price ranges.

Which of the Following Represents a Pricing Strategy That Establishes