Which of the following statements is true of penetration pricing?
A) Penetration pricing makes sense only in categories that have a significant group of consumers who would be willing to pay a premium.
B) A company using penetration pricing gains a very high profit on each individual sale.
C) A company using penetration pricing makes profit from the volume of sales.
D)Penetration pricing involves increasing product prices to target upscale consumers.

Question

13-12-2022
Business

contestada

Which of the following statements is true of penetration pricing?
A) Penetration pricing makes sense only in categories that have a significant group of consumers who would be willing to pay a premium.
B) A company using penetration pricing gains a very high profit on each individual sale.
C) A company using penetration pricing makes profit from the volume of sales.
D)Penetration pricing involves increasing product prices to target upscale consumers.

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lhstevenugwu lhstevenugwu · Answer 1 · 2022-12-19T20:14:30+01:00

A company using penetration pricing makes profit from the volume of sales (Option C) Is the correct answer.

What is penetration pricing?

Penetration pricing is a marketing tactic by which a company presents a new product or service at a cheaper price during its initial release.

Penetration pricing strategy seeks to increase market share by luring consumers to test new products in the hopes that they would remain loyal after prices return to normal. An online news website that offers a free trial month for a subscription-based service or a bank that provides a free checking account for six months are two instances of penetration pricing.

Learn more about penetration pricing here https://brainly.com/question/6766111

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