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Walker is taking his wife and two daughters to yellowstone national park for a family vacation. He does some research trying to find the best price and comes across a company called wild out west. Wild out west offers a flat price for a trip to yellowstone for a wilderness hike. Wild out west is using _____ pricing

User Richsage
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Answer:

Wild out west is using penetration pricing.

Step-by-step explanation:

Penetration pricing is a pricing strategy in which the price charged for the good is very low with the hope of luring more customers, increasing market share, and in that way, compensate the lower profits from the reduced prices with a higher sales volume.

The flat rate that Wild out west is charging is likely lower for customers than most, if not all competitors. For this reason, Walker choose Wild out west for his trip, and Wild out west gained three new customers as a result of its penetration pricing strategy.

User Makboney
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