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Question
Introducing a product at low price and increasing the price once the brand succeeds is known as ______ pricing.
Options
Penetration
Skimming
Going rate
None of these
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Solution
Introducing a product at low price and increasing the price once the brand succeeds is known as Penetration pricing.
Explanation:
Penetration pricing is a strategy in which a product is introduced at a low price to attract customers and gain market share quickly. Once the product gains acceptance and a substantial customer base, the price is gradually increased. This approach helps establish the brand in the market and build customer loyalty before adjusting prices to a more profitable level.
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