Advertisements
Advertisements
Question
Setting a price below than that of the competition is called ______.
Options
Skimming
Competitive pricing
Penetration pricing
None
Solution
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.
APPEARS IN
RELATED QUESTIONS
Which pricing strategy involves charging according to their competitors?
Factors which do not influence price determination is ______.
The pricing strategy involves charging according to what competitors are charging ______.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
What is parity pricing?
What is skimming pricing?
Identify two desirable conditions under penetrating pricing.
What are various strategies used for pricing a product?
"Penetrating pricing leads to setting a high initial price". Comment
Discuss the cons of Penetrating Pricing Policy.
