a market-penetration pricing policy should least likely be used for a new product when ________.,

0
35
suit, man, laptop @ Pixabay

A market-penetration pricing policy should least likely be used for a new product when __. Many businesses  want to use this type of pricing strategy because they believe it will increase sales, but the reality is that it does not always work as planned. A common misconception about market penetration pricing is that it helps get a foothold in the marketplace and then can later be altered to create an increased profit margin. The truth is that customers are more price sensitive when they are purchasing something new, which means there is no guarantee that you will see any return on your investment by using this strategy. Keywords: conversion rate optimization, pricing strategy, marketing strategy The market penetration pricing strategy is best employed when there isn’t a lot of competition in the marketplace and you are able to offer something that’s significantly better than what else is on the market. For instance, if your product offers more features for less money or it has an interesting new technology behind it, then this could be a good opportunity to use such a strategy. It can also work well as part of another type of pricing plan like cost-plus where you set prices according to production costs with some profit margin built into them. Businesses should carefully consider which one will provide their customers with the most value before deciding how they want to proceed. A market-penetration pricing policy should least likely be used for a new product

LEAVE A REPLY

Please enter your comment!
Please enter your name here