What pricing strategy was PayPal using when it paid its customers to use its online payment system initially because it knew that if customers adopted its service, it would be hard for competitors to dislodge it, and it could raise prices later?
A) penetration pricing
B) price skimming
C) bundling
D) lead user pricing

Question

Quizplus · Accepted Answer

PayPal used penetration pricing by initially paying customers to use its service to quickly gain market share and establish a strong user base, making it difficult for competitors to compete.

What Pricing Strategy Was PayPal Using When It Paid Its