Question

The major objectives associated with a market penetration pricing strategy are to:

Answer 1

Answer:

a. capture the high end of the market demand curve and lower introduction costs.

Explanation:

Penetration pricing strategy is an approach where a company seeks to gain market share of a new product by introducing the product at a lower price. The objective is to use the low price to make customers notice the new product. Penetration pricing aims at encouraging customers to try out the product, thereby creating a market for that product.

Penetration strategy is effective where other suppliers have similar goods and services. The marketer attempts to convince consumers to ignore other goods and buy his or her products. The strategy discourages more competitors from entering the market. Although the strategy grows sales rapidly,  It's risky as customers may abandon the product should the business adjusts prices to make profits