passwella.
Menu

JAMB Commerce 1998 Question 31

Question 31

Marketing

Product X was introduced into the market at ₦4.00 with its cost of production at ₦3.90 while competing products are selling at ₦4.50. What pricing policy are producers of X adopting?

  1. A.market skimming
  2. B.market penetration
  3. C.product live promotion
  4. D.above the market pricing.
Show the answer and explanation

Answer: B (market penetration)

Explanation

Setting a low price below competitors to capture a large share of the market quickly is penetration pricing.