Question

Which pricing policy is probably "best" for a profit-oriented, low-cost producer who is introducing a new product into a market with elastic demand and is expecting strong competition very soon after product introduction?

A. Skimming pricing

B. Introductory price dealing

C. Meeting competition pricing

D. Penetration pricing

E. Status-quo pricing

Answer 1

D

Step-by-step explanation:

Penetration pricing strategy is setting an initial low price in other to gain market share and switch consumers from competitors. As a new entrant into the market with Low cost production, penetration pricing strategy should be introduced.