PRC-3 · Chapter 7 · Question 11 of 72
Conversely, a company launching a generic brand of laundry detergent sets the price very low right from the start to quickly attract a massive number of price-sensitive buyers and capture large market share. What pricing strategy is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Penetration pricing
Explanation
Market-penetration pricing involves setting a low initial price in order to penetrate the market quickly and deeply—to attract a large number of buyers quickly and win a large market share.
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