Question

Remote Company has developed a new universal remote that works with all cable, over the air and streaming channels. While the device is unique, it’s competitors will soon (6-12 months) be able to reverse engineer it and introduce their own version into the marketplace. Remote Company’s best pricing strategy would be:
A. Psychological pricing
B. Penetration pricing
C. Cannot be determined.
D. Skimming price

Answer 1

Answer:

The correct answer is letter "B": Penetration pricing.

Explanation:

Penetration pricing unveils new goods or services at an initially low price to draw buyers away from rivals. Penetration pricing allows a business to create barriers to market entry by removing them. The new company hopes that consumers will continue to use their products even after prices increase to normal levels.