The market for turkey products is large.If a major producer of turkeys were to introduce a boneless fresh turkey wrapped around savory dressing,most of the large market for this new product would be aware of its existence.The market is price sensitive,and there is some potential competition.What would be the appropriate strategy?

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Quizplus · Accepted Answer

Penetration pricing would be the appropriate strategy as the market is price sensitive and potential competition exists. By offering a lower price for the new product initially, the company can attract customers and gain market share. Once consumers are convinced of the product's value, the company can gradually increase the price. This strategy can help the company establish itself in the market and create brand loyalty. Price skimming is not suitable in a price-sensitive market, cost bundling is not applicable as there are no other products to bundle, and price lining is not appropriate for a new product introduction.

The Market for Turkey Products Is Large