Question

Be careful with a ________ strategy. Because price is a cue for developing customer perceptions of product quality, the value proposition may be reduced if a low price belies the product's actual quality attributes.A. penetration pricingB. price skimmingC. target ROID. competitor-based pricingE. value pricing

Answer 1

Answer:

A. penetration pricing

Explanation:

Penetration pricing strategy is an approach where a business seeks to gain a sizeable market share by offering a product at a reduced price. The penetration strategy is mostly used when introducing a new product in a competitive market. Marketers use reduces prices to entice customers to buy the and new product.

Penetration pricing strategy aims at changing customer preferences by introducing a new, low-priced product. There is always a risk that customers will perceive this new and low-priced product to be of inferior quality. Middle and high-end customers are more likely to view a low-cost product item as not of their desired standard