When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499, Amazon was using a __________ pricing strategy.

Question

Quizplus · Accepted Answer

A penetration pricing strategy involves offering a product at a low price to penetrate the market and gain market share. Amazon's decision to offer the Kindle Fire at $199 was aimed at penetrating the tablet market and gaining a competitive advantage over Apple's iPad, which was significantly more expensive.

When Amazon Introduced the Kindle Fire Tablet Device at $199