When Playstation video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Playstation used _____ pricing to quickly gain a large share of the market.
A) market-skimming
B) market-absorption
C) market-penetration
D) cost-plus
E) value-set

Question

Quizplus · Accepted Answer

Market-penetration pricing strategy involves setting a low initial price to quickly attract a large number of buyers and gain a significant market share, which is what Playstation did by pricing their video games at $100 lower than Sega games to quickly attract customers.

When Playstation Video Games Were Introduced into the United States