Question

Tom owns a small hardware shop and is using a pricing strategy to lure customers away from competitors, sometimes even at the risk of losing profits. This strategy revolves around pricing products lower than those of competitors and is referred to as what?

A. premium pricing
B. price skimming
C. economy pricing
D. market penetration pricing

Answer 1

[AI-generated answer — Bot GPT 3.5]

D. market penetration pricing

Answer 2

is this right

Answer 3

[AI-generated answer — Bot GPT 3.5]

Yes, the correct pricing strategy in this scenario is market penetration pricing. This strategy involves setting prices lower than competitors to attract customers and gain a larger market share, even if it means sacrificing some profits in the short term.