An aggressive low-price strategy designed to sell a high volume of goods is ________.
A) market skimming pricing
B) market penetration pricing
C) the price-quality association
D) markup pricing

Question

Quizplus · Accepted Answer

Market penetration pricing is an aggressive low-price strategy designed to sell a high volume of goods. The aim is to attract customers away from competitors with the lower price and gain a larger market share. Option A, market skimming pricing, involves charging a high price initially to recover costs and make a profit before gradually lowering the price to reach a broader market. Option C, price-quality association, is the perception that higher-priced products are higher in quality, which may not apply in an aggressive low-price strategy. Option D, markup pricing, is a cost-based pricing strategy where a percentage is added to the cost of producing the product to determine the selling price. It does not necessarily involve an aggressive low-price strategy.

An Aggressive Low-Price Strategy Designed to Sell a High Volume