Question

You have decided that one of the goals of your retail expansion is to establish a loyal customer base before the competition is able to do so. Therefore, when you enter a new trading area with a new product or service, you should use a _____ price strategy.

Answer 1

b. penetration

Step-by-step explanation:

Based on the information provided within the question it can be said that in this scenario you should use a penetration price strategy. This is a strategy that focuses on initially setting the price of a product low so that it can reach a wider market population which would help spread awareness of the product and hopefully lead to an increased sales revenue. This is the best option when entering a new trading area with a new product or service.