The new product pricing strategy through which the companies set lower prices to gain large market share is classified as?
Correct answer: C. penetration pricing
- A. optional product pricing
- B. skimming pricing
- C. penetration pricing
- D. captive product pricing
Explanation
Penetration pricing starts with a relatively low price to attract many buyers quickly and build market share. Skimming pricing does the opposite by beginning with a high price to recover returns from early adopters.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Marketing
Marketing covers how organisations identify customer needs, create value and exchange products or services through suitable markets. Key concepts include market segmentation, targeting, positioning, consumer behaviour, the marketing mix of product, price, place and promotion, branding, product life cycle and differences between marketing and selling.
Practise Marketing
1,700 free Marketing MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Marketing questions
The SBU's considered as 'Cash Cows' requires?
In business buying process, the group who manage and control information flow is classified as?
The stage in buying behavior which follows supplier's selection and discuss final specification of raw materials is classified as?
The number of intermediaries that made products or services available to final customer are classified as?
Return on Investment (ROI) can be calculated as Net return from investment on marketing divided by?
The pricing strategy used to set prices of the products that are must be used with the main product is called?