Take a Seat Ergonomic Solutions has developed a new chair that is meant to help office workers avoid back issues. The marketing team decides to use a lower price point to attract more customers and to keep its competitors at bay. Take a Seat is most likely using which alternative pricing strategy?
A) price skimming
B) demand-based pricing
C) penetration pricing
D) discounting
E) psychological testing

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy where a company sets a lower price for a new product to attract customers and gain market share quickly, which is what Take a Seat is doing with its new chair.

Take a Seat Ergonomic Solutions Has Developed a New Chair