Penetration pricing is a pricing strategy adopted by the new entrants to quickly gain the market share by offering low prices during its initial offerings. Penetration pricing strategy is the best option for the new entrants to attract existing competitors’ customers to try their products if no innovation or differentiation is offered.
The goals of the penetration pricing strategy are;
Gillette is the best example of penetration pricing in fast-moving consumer goods (FMCG) space. Gillette offers free razor handles to its customers and charges premium prices of razor blades, attachments or accessories which cover the loss of giving away free Gillette razors initially.
Why might penetration pricing potentially negatively impact brand image and product positioning
Do you believe that penetration pricing or skim pricing will be better
What is the difference between a skimming price strategy and a penetration
For new products, when is skimming pricing more appropriate, and
1. How does BoltBus use a combination of penetration pricing and
For what type of products would price skimming be most appropriate?
Review the various types of pricing strategies in Table 20.3
Concept Integration. Review the theory of supply and demand. How
