4 Questions
What is the purpose of setting the price artificially low for products and services?
To attract more customers
What is the subsequent action after gaining market share by setting the price artificially low?
Increase the price to boost profit margins
What effect does setting the price artificially low have on the competition?
Discourages competition from entering the market
What is the long-term implication of increasing the price after gaining market share?
It may cause customer dissatisfaction and pushback
This quiz explores the concept of setting initial low prices for products and services to gain market share, followed by increasing the prices later. Test your understanding of penetration pricing strategy with this quiz.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
