With market-penetration pricing,the company makes fewer but more profitable sales.

Question

Quizplus · Accepted Answer

Market-penetration pricing is a pricing strategy where a company sets low prices for its products or services to gain a larger market share. The goal of this strategy is to attract a large number of customers, increase sales volume, and ultimately achieve economies of scale. While market-penetration pricing can increase sales volume, it often leads to lower profit margins on each sale, meaning that the company may make more sales but not necessarily more profit. Therefore, the statement that "with market-penetration pricing, the company makes fewer but more profitable sales" is false.

With Market-Penetration Pricing,the Company Makes Fewer but More Profitable Sales