The pricing strategy that results in greater initial sales volume but lower unit profits is called:

Question

Quizplus · Accepted Answer

The pricing strategy that results in greater initial sales volume but lower unit profits is called penetration pricing. This strategy is used to quickly gain market share by setting a low price to attract customers. As a result, unit profits may be lower initially, but the increased sales volume can lead to a larger overall profit in the long run.

The Pricing Strategy That Results in Greater Initial Sales Volume