Question

Which of the following conditions must be met for market-penetration pricing strategy to work? A. Production and distribution costs must decrease as sales volume increases. B. Enough buyers must want the product at a higher price. C. Costs of producing a smaller volume cannot be so high that they cancel the benefit of charging more. D. Competitors should not be able to enter the market easily and undercut the high price.

Answer 1

Step-by-step explanation:

The correct answer is B. Enough buyers must want the product at a higher price.

In a market-penetration pricing strategy, a company sets a low initial price for its product to attract a large number of buyers and gain market share. However, the strategy can only be successful if there are enough buyers who are willing to purchase the product even at a higher price in the future.

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Answer 2

Enough buyers must want the product at a higher price.