When a company sets a low initial price to gain a large market share quickly, it uses:
Correct answer: B. Penetration pricing
- A. Price skimming
- B. Penetration pricing
- C. Prestige pricing
- D. Cost-plus pricing
Explanation
Penetration pricing uses a relatively low introductory price to attract many buyers and build market share. Price skimming does the opposite by starting with a high price and lowering it later.
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About Marketing Basics
Marketing begins with identifying customer needs and ends with creating, communicating and delivering value through exchange. Coverage includes market research, consumer behaviour, segmentation, targeting, positioning and the marketing mix of product, price, place and promotion, with marketing distinguished from selling and advertising.
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