Multiple choice general knowledge

Penetration pricing is:

  1. Where the firm looks at competitor prices

  2. Where the firm pricing strategy is based on willingness to pay.

  3. Where the firm charges a low price to gain sales

  4. Where the firm charges a high price to support product positioning strategies.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Penetration pricing is a strategy where firms set a low initial price to quickly gain market share and attract customers from competitors. This approach helps build sales volume and establish a customer base before potentially raising prices later. Option A describes competitor-based pricing, Option B describes value-based pricing, and Option D describes premium or prestige pricing strategies.

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