When a company prices a product low to attract a lot of customers and to deter competitors, it is using
A) penetration pricing.
B) price skimming.
C) discounting.
D) bundling.
E) psychological pricing.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy where a company sets a low price for a new product to attract customers and deter competitors, aiming to quickly gain market share.

When a Company Prices a Product Low to Attract a Lot