When Penetration Pricing Is Used,the Product Is Offered at a Low

question 55

True/False

When penetration pricing is used,the product is offered at a low price intended to generate volume sales and achieve high market share,which would compensate for a lower per-unit return.

---

Definitions:

Value-based Pricing

Pricing strategy based on the perceived value of a product or service to the customer rather than its cost of production.

Testing Instrument

A tool or device used to assess, evaluate, or measure the functionality, quality, or performance of a product or material.

Operating Cost

Operating cost encompasses the expenditures related to the day-to-day functions of a business, including costs for goods sold, administration, and general expenses.

Useful Life

Useful life is the estimated period over which an asset is expected to be usable for its intended purpose, affecting its depreciation or amortization schedules.