Question

The major objectives associated with a market penetration pricing strategy are to:

a. capture the high end of the market demand curve and lower introduction costs.
b. quickly build sales and market share. minimize customer dissatisfaction and maximize reference price value.
c. provide an incentive to purchase a less desirable product to obtain a more desirable product.
d. match competitors' prices and communicate high quality.

Answer 1

a. capture the high end of the market demand curve and lower introduction costs.

Step-by-step explanation:

Penetration pricing strategy is an approach where a company seeks to gain market share of a new product by introducing the product at a lower price. The objective is to use the low price to make customers notice the new product. Penetration pricing aims at encouraging customers to try out the product, thereby creating a market for that product.

Penetration strategy is effective where other suppliers have similar goods and services. The marketer attempts to convince consumers to ignore other goods and buy his or her products. The strategy discourages more competitors from entering the market. Although the strategy grows sales rapidly, It's risky as customers may abandon the product should the business adjusts prices to make profits