Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold),the greeting card company was trying to appeal to a mass market that was price sensitive.Hallmark was using a __________ pricing strategy.

Question

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The strategy used by Hallmark of introducing a line of 99-cent cards, with lower prices than their previously least expensive cards, indicates a penetration pricing strategy. The aim of using a penetration pricing strategy is to appeal to more price-sensitive customers and capture a larger market share. This is achieved by offering lower prices than competitors to attract customers who are looking for cheaper alternatives.

Hallmark Cards Introduced a Line of 99-Cent Cards (About Half