Penetration pricing means charging a relatively low price for a product as a way to reach the mass market.The low price is designed to capture a large share of a substantial market.Thus,which of the following BEST describes penetration pricing in this case?
A) It tends to lower production costs.
B) It recoups product development costs quickly.
C) It tempts competitors to enter the market.
D) It provides a large profit per unit sold.

Question

Quizplus · Accepted Answer

Penetration pricing can lead to economies of scale, which may lower production costs as more units are produced and sold.

Penetration Pricing Means Charging a Relatively Low Price for a Product