When a firm introduces a new product at a relatively low price because it hopes to reach the mass market,it is following a _____ strategy.The low price is designed to capture a large share of a substantial market and produce lower production costs.
A) penetration pricing
B) price-insensitive demand
C) price-skimming
D) price elasticity
E) cost bundling

Question

Quizplus · Accepted Answer

Penetration pricing means charging a relatively low for a product in order to reach the mass market.

When a Firm Introduces a New Product at a Relatively