Chello Inc., the largest smartphone manufacturing company has been selling the world's cheapest smartphone called Zing. Recently, to increase its sales, Chello reduced the price of the phone even further. The marketing slogan for the Zing series is "The cheapest way to get smart." Chello Inc. is most likely using a _____ in this scenario.

Question

Quizplus · Accepted Answer

Chello Inc. is using a market penetration strategy by reducing the price of the Zing series to increase its sales. The marketing slogan also suggests that the company is trying to attract more price-sensitive customers who want to own a smartphone at the lowest possible price. Product diversification strategy involves expanding the product line, whereas product development strategy involves improving the existing product. Market integration strategy involves merging with or acquiring other companies to increase market share.