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WAEC Commerce 1998 Question 44

Question 44

Marketing

When a firm sets a low price for new product, this is said to be

  1. A.market skimming
  2. B.competitive pricing
  3. C.penetration pricing
  4. D.loss leader pricing
  5. E.target pricing
Show the answer and explanation

Answer: C (penetration pricing)

Explanation

A low starting price to win a large share of the market is penetration pricing.