What Is the Short-Sighted Thinking Behind the Penetration-Pricing Strategy

question 5

Multiple Choice

What is the short-sighted thinking behind the penetration-pricing strategy?

• A) Pricing below competitors will lead to higher market share
• B) Gross margins should be very high for a new product.
• C) Loyal customers demand the lowest price.
• D) The simplest method of selective prices saves time.
• E) Prices should match the value of products.

---

Definitions:

Green Business Practices

Sustainable and environmentally friendly methods employed by companies to minimize their ecological footprint.

Energy Use

The amount of energy consumed in a process or by an organization, household, or device, often with a focus on reducing negative environmental impact.

Capacity

The maximum amount that something can contain or produce.

Consumer Involvement

Consumer involvement refers to the degree of interest and engagement that a consumer has with a particular product, service, or brand, affecting their purchasing decisions.