A new startup wants to gain as many users as possible to eventually pay for their service,once they understand the product's value to them.Their first pricing strategy should be one of ___________ pricing and then switch to __________ to further amass market share.
A)freemium/penetration
B)freemium/skimming
C)penetration/freemium
D)penetration/skimming

Question

Quizplus · Accepted Answer

The best choice for the startup would be to use a freemium pricing strategy initially to attract as many users as possible and let them get used to the product without any monetary commitment. Once customers understand the value of the product, the startup can switch to a penetration pricing strategy to further increase market share by offering a lower price point compared to competitors. Skimming pricing, on the other hand, is typically used for products with unique features or benefits that customers are willing to pay a premium for, which may not be applicable in the case of a new startup trying to amass users.

A New Startup Wants to Gain as Many Users as Possible