Asked by
Tianna Lashay
on Dec 15, 2024
Verified
Wrigley introduced a new flavor of Orbit brand sugar-free chewing gum, mint mojito, and its introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used
A) skimming pricing.
B) price lining.
C) odd-even pricing.
D) penetration pricing.
E) loss-leader pricing.
Penetration Pricing
Penetration pricing is a marketing strategy used to attract customers to a new product or service by offering a lower price initially.
- Familiarize oneself with the concepts underlying penetration and skimming pricing strategies and ascertain when they should be employed.
- Highlight the unique aspects of pricing strategies centered on market demand, cost management, profit aspirations, and competition response.
Verified Answer
CM
Learning Objectives
- Familiarize oneself with the concepts underlying penetration and skimming pricing strategies and ascertain when they should be employed.
- Highlight the unique aspects of pricing strategies centered on market demand, cost management, profit aspirations, and competition response.
Related questions
Price Lining Is Considered to Be a ________ Approach to ...
Target Pricing Is Considered to Be a ________ Approach to ...
Several Factors Indicate That a Penetration Pricing Policy Would Be ...
In Some Cases, Penetration Pricing May Follow Skimming Pricing ...
Which of These Pricing Techniques Is Most Sensitive to Customers ...