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Rubaiya Maisha
on Dec 15, 2024

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During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price for a new product is referred to as ________ pricing.

A) penetration
B) cost-plus
C) target ROI
D) below-market
E) skimming

Penetration Pricing

A pricing strategy where a product is offered at a lower price than competitors to quickly gain market share.

Competitive Entry

The process of entering a new market or industry, potentially disrupting existing competitors and market dynamics.

  • Understand the strategic goals associated with different pricing tactics, namely skimming and penetration pricing, through the product life cycle stages.
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Mikaela ReneeDec 20, 2024
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