Firms should be careful with a ________ strategy, as price is a cue for developing customer perceptions of product quality. The value proposition may be reduced if a low price belies the product's actual quality attributes.

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Penetration pricing is a strategy in which a firm sets a low price for its products initially to enter a market quickly and gain market share. However, firms should be cautious with this strategy because customers often associate low prices with low quality. Therefore, if the product's actual quality is higher than the price suggests, the value proposition may be reduced, and customers may perceive the product as inferior.

Firms Should Be Careful with a ________ Strategy, as Price