Question

Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles. Therefore, Zen is most likely to ______. Group of answer choices initially charge a relatively low price per product introduce the line at a relatively high price per product wait until the current competition weakens join the competition at its peak

Answer 1

Answer:

initially charge a relatively low price per product

Explanation:

A penetration pricing approach is a strategy in which an organization establishes a low price for a new product at the beginning to attract customers and then, the price is raised. According to this, the answer is that Zen is most likely to initially charge a relatively low price per product.

Answer 2

Answer:

initially charge a relatively low price per product

Explanation:

Penetration pricing is when a company introduces a lower product price with the aim of gaining a market segment.

Prices are initially set at lower level to attract customers and to gain a larger portion of the market. Word of mouth goes a long way in helping the company attract more clients.

When adoption of the product has become widespread the price can now be taken back to its normal level.