Oscar Mayer has recently developed a new snack product that's targeted to kids and young adults as a healthy,protein-based after-school or pre-dinner snack.They expect the product to complement their Lunchables product line and appeal to teen-age or college-age consumers who think of Lunchables as just for younger kids.In order to promote product trial and subsequent adoption,the company plans to use a relatively low entry price compared to the competition.What type of pricing strategy does Oscar Mayer plan to utilize?
A)penetration
B)everyday low pricing
C)skimming
D)competitive pricing

Question

​Oscar Mayer has recently developed a new snack product that's targeted to kids and young adults as a healthy,protein-based after-school or pre-dinner snack.They expect the product to complement their Lunchables product line and appeal to teen-age or college-age consumers who think of Lunchables as just for younger kids.In order to promote product trial and subsequent adoption,the company plans to use a relatively low entry price compared to the competition.What type of pricing strategy does Oscar Mayer plan to utilize?
A)​penetration
B)​everyday low pricing
C)​skimming
D)​competitive pricing

Quizplus · Accepted Answer

The company plans to use a relatively low entry price to promote product trial and subsequent adoption, which is a characteristic of penetration pricing strategy. This strategy involves setting a low price for a new product in order to attract customers and gain market share quickly. By doing so, Oscar Mayer hopes to encourage teen-age or college-age consumers to try the new product, which will complement their Lunchables product line.

​Oscar Mayer Has Recently Developed a New Snack Product That's

Oscar Mayer Has Recently Developed a New Snack Product That's