Rubrix,a leading animation and gaming company,launches its video game console at an introductory price of $189.00,which is relatively low for products of this category.The reasoning behind this low pricing is that Rubrix expected fierce competition to move in rapidly.Also,the demand for video game consoles varied according to the price sensitivity of prospective customers.Identify the pricing policy used here.
A)Penetration policy
B)Markdown policy
C)Skimming policy
D)Going-rate policy

Question

Quizplus · Accepted Answer

Rubrix is using a penetration pricing policy by offering its gaming console at a lower price than its competitors. This is done to quickly capture market share and gain a competitive advantage. By offering an attractive price, Rubrix hopes to entice price-sensitive customers and generate higher sales volumes, which can help it penetrate the market and establish a loyal customer base. As competition intensifies, the company can adjust its pricing strategy accordingly.

Rubrix,a Leading Animation and Gaming Company,launches Its Video Game Console