A penetration pricing policy:
A) Tries to sell the whole market at one low price.
B) Tries to sell the top of the market at a high price.
C) Is used when demand for the product involved is inelastic.
D) Usually involves a slow reduction in price over time.
E) Is used when the firm does not expect strong competition soon after its product is introduced.

Question

Quizplus · Accepted Answer

Penetration pricing aims to capture the entire market by setting a low price to attract a large number of customers quickly.

A Penetration Pricing Policy