Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?
A) Electrowhip's competitors utilize social media for marketing their products.
B) Electrowhip sells products whose image and quality support high prices.
C) Electrowhip operates in a market with many competitors.
D) Electrowhip does not operate in a price sensitive market.
E) Electrowhip's products are intended to appeal to the elite in society.

Question

Quizplus · Accepted Answer

A market penetration pricing strategy is effective in a competitive market as it allows a company to attract customers by offering lower prices than competitors, thereby increasing market share.

Electrowhip, a Company That Manufacturers Blenders and Electric Whisks, Has