A penetration pricing policy
A) tries to sell the top of the demand curve initially.
B) tries to sell the whole market at one low price.
C) tries to sell the top of a market.
D) tries to target the elite market first.
E) involves price movement down the demand curve over time.

Question

Quizplus · Accepted Answer

A penetration pricing policy involves setting a low price to attract a large number of customers and gain market share quickly. It aims to sell the whole market at one low price and may include price movement up or down the demand curve over time.

A Penetration Pricing Policy