Dell's new line of computers is selling for up to 20 percent lower than similar computers sold by its largest competitors.Since Dell's goal is to maximize its sales,it is probably using a _____ strategy.
A) price lining
B) price fixing
C) status quo pricing
D) penetration pricing
E) price skimming

Question

Quizplus · Accepted Answer

Dell's strategy of selling their new line of computers for up to 20 percent lower than similar computers sold by its largest competitors indicates that they are using a penetration pricing strategy. This strategy involves setting a low price to enter a new market, in order to attract customers and gain market share. By setting a lower price point, Dell is able to compete more effectively with established competitors and grow their sales in the process.

Dell's New Line of Computers Is Selling for Up to 20