Question

Most new Carmex products are priced between $0.99 and $2.99, well within reach of the price sensitive mass consumer market. Carmex is utilizing a _________ strategy with its lip balm products.

A) skimming pricing B) penetration pricing C) prestige pricing D) price lining

Answer 1

B) penetration pricing

Step-by-step explanation:

Penetration pricing is a business strategy used to attract customers to a new product or service by offering a lower price during its initial offering. Market penetration pricing relies on the strategy of using low prices initially to make a wide number of customers aware of a new product.