Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market.Xunrui purchases the components for the items are then sent to small assembly factories in Shenzhen,which is located in southern China.These smartphones retail for about $65 in U.S.dollars,significantly less than the $250 to $600 for smartphones marketed by Apple or Samsung,the top two marketers of these items.Xunrui Communications MOST LIKELY is using which pricing strategy in this example?

Question

Quizplus · Accepted Answer

Xunrui Communications is using penetration pricing, which involves setting a low price to enter a new market and gain market share quickly. This strategy is commonly used by new or relatively unknown companies to attract customers away from established competitors.

Xunrui Communications Is an Upstart Maker of Inexpensive Smartphones for the Chinese