Save
...
unit 1
pricing strategies
penetration pricing
Save
Share
Learn
Content
Leaderboard
Learn
Created by
chet singh
Visit profile
Cards (4)
What is penetration pricing?
Setting a
price
really
low
on a new
product
to encourage
sales
and
persuade
them to try the
product
What should the lower prices lead to?
Business
gaining more
market
share
Give a benefit of penetration pricing?
Works
best
with new
products
being
launched
to
encourage
customers to try the
product
Give 2 drawbacks of penetration pricing?
Consumers
may have
brought
without the
low
price anyway
Expensive
-
reduces
sales
revenues
which eats into
profits