Advertisements
Advertisements
प्रश्न
The main aim of penetrating pricing is to ______.
पर्याय
Provide funds for expansion
Maximize the market share
Provide a reasonable return on capital
Avoid price wars
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
It is also known as ‘going rate pricing’ or competition based pricing.
The strategy of introducing new product in existing market is classified as ______.
Introducing a product at low price and increasing the price once the brand succeeds is known as ______ pricing.
Setting a price below than that of the competition is called ______.
What is parity pricing?
"Competition based pricing is ideal for non-branded products." Comment.
What is Cost plus pricing policy?
State two disadvantages of Cost plus pricing policy.
Identify two desirable conditions under penetrating pricing.
What are the conditions under which parity pricing is desirable?
