Definition of price penetration

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What Is Market Penetration Pricing?

Penetration pricing is a marketing strategy implemented to draw customers to a new product or service.

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Penetration pricing is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth.

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Description:Also, if the low price is part of an introductory campaign, curiosity may prompt customers to choose the brand initially, but once the price begins to rise or levels with a competing brand, they may switch back to the competitor. Your business must be able to absorb any loss incurred when you slash prices, so make sure you have enough reserve funds to keep the business afloat. It can be based on marginal cost pricing , which is economically efficient. It discourages the entry of competitors.

Views: 2957 Date: 2018-06-25 Favorited: 37 favorites

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