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ycow [4]
3 years ago
7

When a firm introduces a new product at a relatively low price because it hopes to reach the mass market, it is following a ____

_ strategy. The low price is designed to capture a large share of a substantial market and produce lower production costs.
Social Studies
1 answer:
quester [9]3 years ago
7 0

Answer:

The correct term that fills the blank in the paragraph is:

- When a firm introduces a new product at a relatively low price because it hopes to reach the mass market, it is following an <u>penetration pricing</u> strategy. The low price is designed to capture a large share of a substantial market and produce lower production costs.

Explanation:

<em>The penetration pricing</em> is the form how a company introduce a new product with a low cost, the will win market and produce those products to a lower production costs, <u>it occurs due the purchase of raw material for that product results be cheapest when this is made wholesale</u>, and it is the reason because the small companies or familiar companies can't advance through the time, because their production costs are so much high than other bigger companies and, how result, their utilities are smaller.

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