Lysol sanitizing wipes entered the market at a low sales price and was supported by heavy couponing. As the initial trial period passed, the pricing slowly rose and the couponing became more infrequent. This activity is an example of penetration pricing.

Question

Quizplus · Accepted Answer

Penetration pricing involves setting a low initial price for a product to attract customers and gain market share, followed by gradually increasing the price, which is what was described with Lysol sanitizing wipes.

Lysol Sanitizing Wipes Entered the Market at a Low Sales