Which of the following firms would find penetration pricing most appealing?
A) a firm that is willing to sell some goods below cost in order to generate more store traffic
B) a firm that wants to remove price as a point of comparison so that consumers will make their choices based on other considerations
C) a firm that is introducing a new product and wants to quickly capture the market and discourage competition
D) a firm that has a product for which it wants to establish an image of quality and exclusivity

Question

Quizplus · Accepted Answer

Penetration pricing is typically used by firms that are introducing a new product and want to quickly capture the market and discourage competition. By offering low prices, they can attract customers away from established brands and gain market share more quickly.

Which of the Following Firms Would Find Penetration Pricing Most