ACCA PM · Chapter 7 · Question 6 of 10
A company launches a new streaming service at a very low monthly price, intending to build a large customer base quickly and discourage competitors from entering. Which pricing strategy is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Penetration pricing
Explanation
Penetration pricing sets a low initial price to win market share quickly, gain economies of scale and deter new entrants. Skimming and premium pricing use high prices, while complementary product pricing links the prices of products that are used together.
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