Which of the following is true of market-penetration pricing?
A) It should be used when the product's quality and image support a high price.
B) It involves setting a high price for a new product to appeal to the elite in society.
C) It results in drawing in large numbers of buyers quickly, winning a large market share.
D) It is best used in conjunction with a market-skimming pricing strategy.
E) It results in the company making fewer and less profitable sales.

Question

Quizplus · Accepted Answer

Market-penetration pricing involves setting a low price for a new product to quickly draw in a large number of buyers and win a significant market share. This strategy is useful for companies that want to establish themselves in a new market or increase their market share.

Which of the Following Is True of Market-Penetration Pricing