Question

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

a. market-skimming pricing.
b. market-penetration pricing
c. market-segmentation pricing
d. cost-plus pricing
e. captive-product pricing

Answer 1

Answer: Market penetration pricing

Explanation: Market penetration pricing is a business strategy where a company starts off the sales of its product at a relatively low price, and then increases the price of it product as it gains customers with time.

Whiz Corp needs to start up with a penetration price to attract customers to their new automobile they are selling.