Question

To discourage competitive entry, a company can price its new product low, using penetration pricing. This pricing strategy also helps to: reduce costs. increase profits. build customer loyalty. build unit volume. improve product quality.

Answer 1

The answer is: build unit volume

Step-by-step explanation:

When a company introduces a new product with a very low price (or even for free) using penetration marketing it is trying to attract new customers, discourage competition and build market share (build unit volume). Hopefully the new customers will like the product so when the company increases its price they will still buy it. For example, the first month I used Netflix it was free.