Question

Remote Company has developed a new universal remote that works with all cable, over the air and streaming channels. While the device is unique, it competitors will soon (6-12 months) be able to reverse engineer it and introduce their own version into the marketplace. Remote Company's best pricing strategy would be:

Answer 1

The correct answer is letter "B": Penetration pricing.

Step-by-step explanation:

Penetration pricing launches new goods or services at an initially low price to keep buyers away from rivals. Penetration pricing allows a company to create barriers to market entry by removing them. The new company assumes that even when costs rise to normal levels, customers will continue to buy their goods.