Respuesta :
Penetration pricing would be used in setting the price of a new product if considerable competition is expected.
What is Penetration pricing?
In order to attract customers, the penetration pricing approach entails launching a new good or service at a cheap price. Gaining market share and aggressively attracting clients through low costs are the objectives.
Price skimming and penetration pricing are two typical tactics used to introduce new goods. Both are transient and provide various means of enhancing launch outcomes.
With penetration pricing, new products are offered at reduced costs in order to attract customers. Profit margins are lower in the short term, but large sales volumes make up for the low margins. When demand rises, you can increase the price.
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