The major objectives associated with a market penetration pricing strategy are to:
A) capture the high end of the market demand curve and lower introduction costs.
B) build sales and market share.
C) minimize customer dissatisfaction and maximize reference price value.
D) provide an incentive to purchase a less desirable product in order to obtain a more desirable product.
E) match competitors' prices and communicate high quality.

Question

Quizplus · Accepted Answer

The main objective of a market penetration pricing strategy is to build sales and market share. This is typically done by setting a low price to attract customers and gain a foothold in the market. Once a customer base is established, prices may be increased. Other objectives such as capturing the high end of the market demand curve or matching competitors' prices may also be relevant, but building sales and market share is the primary objective.

The Major Objectives Associated with a Market Penetration Pricing Strategy