A market penetration strategy should be used when a retailer ________.
A) believes in the price-quality association
B) seeks to maximize profits
C) seeks to maximize sales
D) seeks to differentiate its offerings through superior customer service

Question

Quizplus · Accepted Answer

A market penetration strategy is used when a retailer seeks to maximize sales, often through aggressive pricing and promotion tactics. By attracting more customers and increasing sales volume, the retailer can potentially achieve economies of scale, lower costs, and ultimately increase profits. This strategy is not necessarily focused on price-quality association or superior customer service, but rather on gaining market share and expanding the customer base.

A Market Penetration Strategy Should Be Used When a Retailer