A company introduces a new product at a deliberately low price to gain market share quickly. Which pricing strategy is it using?
Correct answer: C. Market penetration pricing
- A. Prestige pricing
- B. Cost-plus pricing
- C. Market penetration pricing
- D. Price discrimination
Explanation
Market penetration pricing uses a low introductory price to attract many buyers and build market share. Prestige pricing uses a high price to signal exclusivity, so it is the opposite approach.
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