Which of the following statements is true of penetration pricing?
A)Penetration pricing makes sense only in categories that have a significant group of consumers who would be willing to pay a premium.
B)Penetration pricing involves increasing product prices to target upscale consumers.
C)A company using the strategy of penetration pricing makes a huge profit from the sheer volume of sales.
D)A company using the strategy of penetration pricing gains a very high profit on each individual sale.

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a low price to attract a large number of customers and gain market share, leading to profit through high sales volume rather than high profit margins per sale.

Which of the Following Statements Is True of Penetration Pricing