Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

The Penetration Strategy

Explanation:

The penetration strategy is aggressive. It primarily seeks to increase a firm's share of total sales in a particular market or for a particular product. The prices are lowered to achieve the acquisition of a large percentage of consumers in a competitive market.

One of the goals of the firms who use this strategy is to significantly reduce the sales of the competitors so much so, they are forced to drop out of that market.

To effectively carry out the penetration strategy, the following methods are used:

Price reduction which is what this question is about Terms Improvement - Better customer experience among others Expanded Marketing - Creative ways of marketing existing products Product Differentiation - Creating a radically different product that attracts customers Distribution Channel - Creating more aggressive channels for product distribution