The Dell EC 280 is a small desktop computer that uses less electrical power, has a Celeron processor, and is targeted to the less affluent, very large, Chinese market that has never owned a computer.It was introduced at a price of $340 for a basic setup.Dell is using which pricing strategy in this example?

Question

Quizplus · Accepted Answer

The pricing strategy used in this example is penetration pricing, as Dell is introducing a low-priced product to capture a significant share of a new market segment. This strategy aims to attract customers who have not previously owned a computer and may have limited financial resources. Penetration pricing enables Dell to build market share quickly and establish a reputation in the Chinese market.

The Dell EC 280 Is a Small Desktop Computer That