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,which of the following BEST describes penetration pricing in this case?

A) It tends to lower production costs.
B) It recoups product development costs quickly.
C) It tempts competitors to enter the market.
D) It provides a large profit per unit sold.