Penetration pricing works best under all of the following conditions except
A) when there is a high level of brand loyalty
B) when consumers are price sensitive
C) when the company has achieved economies-of-scale
D) when prices are low enough to keep out the competition

Question

Quizplus · Accepted Answer

Penetration pricing is less effective when there is a high level of brand loyalty because consumers are less likely to switch to a new brand based solely on lower prices.

Penetration Pricing Works Best Under All of the Following Conditions