Question

The goal of __________ is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price. Select one: a. late-mover pricing b. odd pricing c. market acceptance pricing d. penetration pricing e. price skimming

Answer 1

Answer:

D. Penetration pricing

Explanation:

The goal of penetration pricing is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price.

Penetration pricing: It is a pricing technique of fixing the low initial price of a product to establish the product in the market due to the low price. This pricing strategy help in attracting more customer and gain a bigger market share. The price of the product is relatively low in the market compare to competitive products. This strategy could surprise competitors as they could lose profit at the lower price of the product, which can create a competitor´s advantage for the organization. This pricing technique is used in the introductory stage of the life cycle of the product.