GameCube video game console was launched with an introductory price of $199.95,which was quite low for products of this category.The reasoning behind this low pricing was that the GameCube manufacturer expected competition to move in rapidly.Identify the pricing policy used here.
A) Penetration policy
B) Markdown policy
C) Skimming policy
D) Going-rate policy

Question

Quizplus · Accepted Answer

A penetration policy is one in which the seller charges a relatively low price on a new product. Generally, this policy is used when the firm expects competition to move in rapidly and when demand for the product is, at least in the short run, price elastic.

GameCube Video Game Console Was Launched with an Introductory Price