The introductory price for the Nintendo Gamecube video game console was $100 lower than the list price of Xbox and Playstation 2,its only two competitors.Given this information,you can assume Nintendo used what type of policy for its Gamecube?
A) cost bundling
B) flexible pricing
C) penetration pricing
D) competitive skimming

Question

Quizplus · Accepted Answer

Penetration pricing is a pricing strategy in which a company sets a low price for its product when it enters the market to attract customers and gain market share, even if it means a lower profit margin. In this scenario, Nintendo used a penetration pricing policy by offering the Gamecube at a price lower than its competitors to entice customers to buy their product.

The Introductory Price for the Nintendo Gamecube Video Game Console