Question

Setting a price below than that of the competition is called ______.

Options

• Skimming

• Competitive pricing

• Penetration pricing

• None

Answer 1

Setting a price below than that of the competition is called Penetration pricing.

Explanation:

Penetration pricing is a strategy where a product is introduced at a price lower than the competition to attract customers and quickly gain market share. The idea is to draw consumers away from competitors, build a customer base, and establish a strong market presence.