Asked by Garrett Brown on May 11, 2024
Verified
To accomplish the goals of increasing sales, increasing store traffic, and discouraging competition, which of the following is an appropriate strategy?
A) penetration pricing
B) price skimming
C) psychological pricing
D) price lining
Store Traffic
The number of people who visit a retail location within a given time frame.
Penetration Pricing
A pricing strategy where the price of a new product is intentionally set lower than the competition to gain market share quickly.
Price Skimming
A pricing strategy in which a company charges the highest initial price that customers will pay for a new product, then gradually lowers the price to attract more price-sensitive customers.
- Become familiar with a variety of pricing strategies and tactics in use across the marketplace.
Verified Answer
BD
Brianna DeWitt
May 18, 2024
Final Answer :
A
Explanation :
Penetration pricing is a strategy used to enter a market with a low initial price to attract customers, increase store traffic, and potentially discourage competition by making the market less attractive for higher-priced competitors. This approach can help a company quickly gain market share and increase sales.
Learning Objectives
- Become familiar with a variety of pricing strategies and tactics in use across the marketplace.