Asked by
Laurel Brown
on Oct 23, 2024
Verified
The pricing strategy that results in greater initial sales volume but lower unit profits is called:
A) skimming pricing.
B) target pricing.
C) predatory pricing.
D) penetration pricing.
Penetration Pricing
A strategy where a product is priced lower than its competitors or market average to gain market share rapidly at the expense of short-term profitability.
Sales Volume
The total number of units sold within a specified timeframe.
Unit Profits
The profit earned on each unit of product sold, calculated by subtracting the cost to produce and distribute a unit from its sale price.
- Acquire an understanding of the variations and implementations of several pricing strategies like skimming, penetration, and predatory pricing.
Verified Answer
JB
Learning Objectives
- Acquire an understanding of the variations and implementations of several pricing strategies like skimming, penetration, and predatory pricing.