Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to utilize the experience curve to gain market share with a low price and dominate the industry?
A) demand pricing
B) competitive pricing
C) skim pricing
D) penetration pricing
E) loss-leader pricing

Question

Quizplus · Accepted Answer

Penetration pricing is a pricing strategy that involves setting a low price for a new product to quickly gain market share and establish a foothold in the market. This strategy helps to hasten market development by encouraging early adoption and helps the pioneer to utilize the experience curve to gain market share. By offering a low price, the pioneer can attract consumers away from the competition and establish a dominant position in the industry.

Which Type of Pricing Attempts to Hasten Market Development and Offers