Penetration pricing assumes that
A)the price of a product is directly proportionate to its quality.
B)people always pay more for items that are unfamiliar to them.
C)advertising is a global activity.
D)a low price will make the product more attractive.

Question

Quizplus · Accepted Answer

Penetration pricing is a strategy where a product is introduced to the market at a low price to attract customers and gain market share. The assumption is that the low price will make the product more attractive to potential buyers, encouraging them to choose it over competitors' offerings.

Penetration Pricing Assumes That