Pentogreen, a company that manufactures soda, offers its latest products at very low prices. Pentogreen's strategy is based on the assumption that more customers will be willing to buy its products if they're offered at lower prices. Pentogreen has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Pentogreen has implemented the _____ strategy.

Question

Quizplus · Accepted Answer

Pentogreen has adopted the penetration pricing strategy, which involves offering products at lower prices to attract a large customer base and gain market share. The company is willing to make a small profit on each sale but hopes to increase its overall sales volume. This strategy is commonly used by companies that are entering a new market or launching a new product.

Pentogreen, a Company That Manufactures Soda, Offers Its Latest Products