Advertisements
Advertisements
Question
What is penetrating pricing?
Solution
This strategy involves setting a low price in the initial stage so as to make the brand quickly popular and to maximise the market share. The manufacturer seeks to sell to the masses. Many firms use this strategy while launching fast moving consumer products. The policy results in high sales volume during the initial stages of a product's life cycle. Some retailers use this strategy by operating on the principle of low markup and higher volume. Penetrating pricing is an aggressive pricing strategy and it may be used to restrict the entry of new firms in the industry.
RELATED QUESTIONS
State any two advantages of cost-plus pricing strategy.
The strategy of introducing new product in existing market is classified 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.
The main aim of penetrating pricing is to ______.
Which pricing strategy will be used to launch a high end auto motors?
Identify two desirable conditions under penetrating pricing.
What are the conditions under which parity pricing is desirable?
What pricing strategy will be used to launch a high-end smartphone?
What are various strategies used for pricing a product?
