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

Answer 1

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.