Penetration

• What is price penetration?

  Starting with a low initial price
• Why do companies use price penetration?

  To stimulate demand and enter a new market
• In which markets is price penetration commonly seen?

  Mobile contracts and streaming platforms
• How does price penetration affect consumer behavior?

  Encourages consumers to switch to your product
• What happens if a product has good quality during price penetration?


  Customers may become brand loyal over time
• What type of customers does price penetration target?

  Price sensitive customers
• What is the objective of using price penetration?

  To grow market share and increase sales
• How can market research help in price penetration?

  It gauges customer response to low prices
• What is the relationship between sales forecast and production in price penetration?

  Forecasting sales helps determine production levels
• What is a potential benefit of high sales in price penetration?

  It can lead to economies of scale
• Why is effective marketing important in price penetration?

  To ensure proper targeting and promotion
• What is a limitation of using price penetration?

  It may indicate low profit margins
• When can a company increase prices after price penetration?

  When the product gains customer loyalty
• What could happen if a company stays in the low price phase too long?

  It may harm the brand image
• How can rivals affect price penetration strategies?

  Rivals may match low prices, causing price wars
• What should a company consider when implementing price penetration?

  Market research and effective marketing strategies