A company that has developed a new product sets the initial price of the product low in hopes that it can gain market share quickly. What pricing strategy does this represent?
A) prestige pricing
B) symbolic pricing
C) psychological pricing
D) price skimming
E) penetration pricing

Question

Quizplus · Accepted Answer

A penetration price is a low price designed to help a new product enter the market and gain market share rapidly. Penetration pricing is used most often when marketers suspect that competitors will enter the market shortly after the product has been introduced.

A Company That Has Developed a New Product Sets the Initial