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Question
The main aim of penetrating pricing is to ______.
Options
Provide funds for expansion
Maximize the market share
Provide a reasonable return on capital
Avoid price wars
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Solution
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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RELATED QUESTIONS
State any two advantages of cost-plus pricing strategy.
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 ______.
Setting a price below than that of the competition is called ______.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
"Competition based pricing is ideal for non-branded products." Comment.
What is skimming pricing?
What is Cost plus pricing policy?
