Leupold & Stevens,Inc.,makes Leupold 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.The new scope offers several different magnifications and is the only scope in the $200 range that is made in Canada.Which pricing strategy is Leupold & Stevens using to appeal to a larger market?
A)skimming pricing
B)penetration pricing
C)price lining
D)odd-even pricing

Question

Quizplus · Accepted Answer

Leupold & Stevens is using penetration pricing by introducing a new product with lower pricing to appeal to a larger market. This strategy helps the company to quickly gain market share and attract price-sensitive customers.