Question

36. Market-penetration pricing strategy can be adopted when
(A) Market is highly price sensitive
(B) Low price stimulates market growth
(C) Both a &b
(D) None of the above​

Answer 1

Answer:

both a and b

Explanation:

I hope it is helpful to you

Answer 2

(c).(both a &b)"Penetration pricing is generally used when demand for a new product or service is projected to be high".

Explanation:

• The hope is that the sales volume will make up for the below-average cost.
• For a certain time span, a penetration pricing strategy favors market share over profitability. In a short period of time, the goal is to drive demand, swiftly grow a customer base, and maximize brand loyalty.
• If it’s an innovative product, this theory works the same way. Price is removed as a barrier to get people to try the new product or service. The company sets a price that’s a bargain for its unique value, while still being cheaper than the familiar options.
• Competitors have less time to respond before the company amasses market share and becomes the new standard of choice.