Leupold & Stevens Inc. makes scopes for rifles and has introduced a new scope that has the quality and performance for which Leupold & Stevens is famous, at a price much lower than it has ever sold a rifle scope before. Which pricing strategy is Leupold & Stevens using to appeal to a larger market?
A)price skimming
B)status quo pricing
C)penetration pricing
D)demand skimming

Question

Quizplus · Accepted Answer

Leupold & Stevens Inc. is using a penetration pricing strategy by introducing a new scope at a lower price point to appeal to a larger market segment. This strategy is typically used to gain market share by offering a lower price than competitors and is often used when introducing a new product to a market.