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प्रश्न
The main aim of penetrating pricing is to ______.
विकल्प
Provide funds for expansion
Maximize the market share
Provide a reasonable return on capital
Avoid price wars
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उत्तर
The main aim of penetrating pricing is to maximize the market share.
Explanation:
Penetration pricing involves setting a low initial price for a new product to attract a large number of customers quickly and gain a significant market share. By doing so, the company aims to establish a strong presence in the market, discourage competitors from entering, and build customer loyalty. Once a substantial market share is achieved, the company may gradually increase prices to improve profitability.
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संबंधित प्रश्न
Which pricing strategy involves charging according to their competitors?
Explain the below mentioned pricing strategy:
Skimming pricing strategy
The strategy of introducing new product in existing market is classified as ______.
Markup pricing is also called as ______.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
______ determines the sales volume and the profit margins.
Give one difference between skimming pricing and penetrating pricing.
Skimming pricing policy is ideal for introducing a product in the FMCG sector. Justify for or against.
“In a competitive market, parity pricing is the appropriate strategy.” Justify either for or against.
Identify two desirable conditions under penetrating pricing.
