A firm discovers that customer demand is very price elastic and that a large consumer market exists. Which pricing technique should the firm utilize?
A) Penetration pricing
B) A one-price policy
C) Skimming pricing
D) Broad price policy

Question

Quizplus · Accepted Answer

Penetration pricing is the most suitable technique when demand is very price elastic and a large consumer market exists, as it involves setting a low price to enter the market quickly and attract a large number of customers.

A Firm Discovers That Customer Demand Is Very Price Elastic