Which of the following conditions would most likely to support market-penetration pricing?
A)The market must be highly price sensitive.
B)Production and distribution costs rise as sales volume increases.
C)The product's quality and image must support the price.
D)The low price does not affect the competition.
E)A low price does not affect market growth.

Question

Quizplus · Accepted Answer

Market-penetration pricing is a strategy where a low price is set to enter or penetrate a competitive market. Therefore, for this strategy to be effective, we need a market that is highly price sensitive, which means it would react strongly to changes in price. This will make customers more likely to switch to our product due to the lower price, which increases our market share.

Which of the Following Conditions Would Most Likely to Support