Penetration Pricing Means Charging a Relatively Low Price for a Product

Multiple Choice

Penetration pricing means charging a relatively low price for a product as a way to reach the mass market.The low price is designed to capture a large share of a substantial market.Thus,penetration pricing does which of the following?

A) tends to be more effective in a less price-sensitive market
B) tempts competitors to enter the market
C) recoups product development costs quickly
D) tends to lower production costs