Score Inc. ,a home products manufacturer,is introducing a new paper coffee filter at a dramatically reduced cost.Score is entering a market already saturated with stiff competition.Which pricing strategy will enable Score to achieve market recognition?
A)Skimming pricing
B)Penetration pricing
C)Psychological pricing
D)Cost-based pricing

Question

Quizplus · Accepted Answer

Penetration pricing is a pricing strategy where the new product is introduced at a lower price than the competitors' prices to gain market share quickly. Since the market is already saturated with competition, this pricing strategy will help Score to attract customers and achieve market recognition. As a result, Score can create a customer base and leverage it in the future to increase prices or introduce newer products.

Score Inc ,A Home Products Manufacturer,is Introducing a New Paper Coffee