One should be careful with a __________________ strategy.Because price is a cue for developing customer perceptions of product quality,the value proposition may be reduced if a low price belies the product's actual quality attributes.

Question

Quizplus · Accepted Answer

Penetration pricing is a low pricing strategy aimed to gain market share quickly. However, if the price is too low, consumers may perceive the product as low quality, which can negatively affect the value proposition. Therefore, companies should be careful when implementing a penetration pricing strategy.

One Should Be Careful with a __________________ Strategy