Penetration pricing strategy
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Penetration pricing in the Smartphone market
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Penetration pricing is a marketing strategy used by firms to attract customers to a new product or service.
Market Penetration Pricing: The Pros and Cons | QuickBooks
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.
Description:The price may be set so low that the seller cannot earn a profit. However, the seller is not irrational. The intent of penetration pricing can follow any of these paths: It is relatively common for a new entrant into a market to engage in penetration pricing, in order to grab an initial block of market share.