The introductory price for the Nintendo Gamecube video game console was $100 lower than the list price of Xbox and Playstation 2,its only two competitors.Given this information,you can assume Nintendo used a _____ policy for its Gamecube.
A) penetration pricing
B) flexible pricing
C) competitive skimming
D) cost bundling
E) absorption pricing

Question

Quizplus · Accepted Answer

Penetration pricing is a pricing strategy in which a company sets a low price for its product or service initially to quickly gain market share. This is exactly what Nintendo did by setting the introductory price of the Gamecube $100 lower than the list price of its competitors Xbox and Playstation 2.

The Introductory Price for the Nintendo Gamecube Video Game Console