Leupold & Stevens,Inc.,makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance for which Leupold & Stevens is famous at a price much lower than it has ever sold a rifle scope before.The new scope offers several different magnifications and is the only scope in the $200 range that is made in the United States.(All similar scopes are priced much higher.)Which pricing strategy is Leupold & Stevens using to appeal to a larger market?
A) price skimming
B) status quo pricing
C) penetration pricing
D) unbundling
E) cost-sharing

Question

Quizplus · Accepted Answer

Leupold & Stevens is using penetration pricing strategy by introducing a new scope at a much lower price compared to other similar scopes in the market. This is an attempt to capture a larger market share by appealing to price-sensitive customers who may have previously been unable or unwilling to purchase a Leupold scope.