Leupold & Stevens,Inc.makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance for which Leupold & Stevens is famous at a price much lower than it has ever sold a rifle scope before.The new scope offers several different magnifications and is the only scope in the $200 range that is made in the United States.(All similar scopes are priced much higher. )Which pricing strategy is Leupold & Stevens using to appeal to a larger market?

Question

Quizplus · Accepted Answer

Leupold & Stevens is using penetration pricing by offering a new scope with high quality and performance at a lower price point than similar scopes on the market in order to appeal to a larger market. This pricing strategy aims to quickly gain market share by undercutting competitors' prices and attracting budget-conscious consumers.