Penetration pricing is a marketing strategy in which a company offers a low price for a new product or service in order to attract customers and gain market share quickly. This pricing strategy is often used by businesses to quickly enter a new market or to compete with established competitors. The goal of penetration pricing is to secure a large customer base and generate sales volume, even if it means sacrificing short-term profits. Over time, the company may gradually increase prices as the product becomes more established in the market.
