When Hallmark cards introduced a line of $.99 cards (about half the price of the previously less expensive cards sold by Hallmark), the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a __________ pricing strategy.
A)prestige
B)skimming
C)penetration
D)demand-backward
E)experience-curve

Question

Quizplus · Accepted Answer

The introduction of a lower-priced line of cards suggests that Hallmark was trying to penetrate the market by appealing to price-sensitive consumers. A penetration pricing strategy involves setting a low price to gain a foothold in a market and attract customers who are looking for a bargain. This strategy is often used to gain market share quickly and increase sales volume.

When Hallmark Cards Introduced a Line of