If a company wants quick acceptance and extensive distribution,when introducing a new product into a highly competitive market with a large number of similar products,penetration pricing is the best strategy.

Question

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Penetration pricing involves setting a low price for a new product in order to quickly gain market share and increase sales volume. This can be effective in a highly competitive market with many similar products as it can help the product stand out and attract new customers. Additionally, a lower price may encourage existing customers to switch to the new product. However, it is important to note that this strategy may not be sustainable in the long term, as prices may need to be increased to maintain profitability once market share is established.

If a Company Wants Quick Acceptance and Extensive Distribution,when Introducing