Question

Eula, a company that manufactures soda, offers its latest products at very low prices. Eula's strategy is based on the assumption that more customers will be willing to buy its products if they are offered at lower prices. Eula has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Eula has implemented the _________ strategy.A. high/low pricing
B. skimming pricing
C. penetration pricing
D. loss-leader pricing

Answer 1

Answer:

C. penetration pricing

Explanation:

Penetration pricing is a marketing strategy where price is set to a low amount in order to get a large portion of the market within a short time.

It is based on the logic that consumers will prefer to buy goods at lower prices.

Penetration pricing is used to get market share and profits are gained at scale. That is small profits on each sale, and when there is large sales turnover profit will be high.