Asked by
Megan Williams
on Nov 06, 2024
Verified
Dynamix Computers initially charged a low price for its new computer and then raised the price after gaining a large market share.Which of the following pricing strategies did Dynamix Computers use in this scenario?
A) Prestige pricing
B) Symbolic pricing
C) Psychological pricing
D) Price skimming
E) Penetration pricing
Penetration Pricing
A marketing strategy where a company introduces a product at a low price to gain market share, then gradually increases the price.
Market Share
The portion of a market controlled by a particular company, product, or brand, typically expressed as a percentage of total sales in the industry.
- Understand the mechanisms of pricing and how they play a role in shaping consumer behavior and psychological responses.
- Comprehend the rationale behind price setting strategies for new and existing products, including reactions to competition.
Verified Answer
TB
Learning Objectives
- Understand the mechanisms of pricing and how they play a role in shaping consumer behavior and psychological responses.
- Comprehend the rationale behind price setting strategies for new and existing products, including reactions to competition.