A penetration pricing strategy is designed to recover a company's developmental and promotional cost of a new product very quickly.

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A penetration pricing strategy involves setting a low initial price for a new product in order to attract customers and gain market share quickly. This strategy is not designed to recover developmental and promotional costs quickly, but rather to establish a foothold in the market and potentially raise prices once the product becomes more established.

A Penetration Pricing Strategy Is Designed to Recover a Company's