A company has set a low price on a new product it introduced. they want to maximize their market share and attract a large number of buyers quickly. which new product pricing strategy should the company use?

Question

Elaina Caldwell

Business

3 November, 17:29

A company has set a low price on a new product it introduced. they want to maximize their market share and attract a large number of buyers quickly. which new product pricing strategy should the company use?

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Raphael Stevenson · Answer 1

The company should use the market-penetration pricing strategy.

Market penetration pricing is a pricing strategy in which initial price of the product is set to be low so that it attracts the new customers (as we attract to the new product with low price) and the goal is achieved, this type of strategy is most operative for increasing market share and sales volume while disheartening competition.