Question

7) For what types of products might marketers use market-penetration pricing? Provide an example.

Answer 1

In a penetration pricing strategy, the product is made to reach large number of people through low prices so that people consume the product and later on-demand can be created. penetration pricing works on the principle of economies of scale. The penetration pricing is a strategy used basically for the products which are for business to consumer

product types - food and beverages eg tomato catchup, pickles, noodles, etc, entertainment platforms like Netflix and amazon prime, etc . grooming products like a shaver, etc, smartphones.

so for all these categories penetration pricing can be used as the products are directly sold to consumer for consumption on mass scale keeping the price low is penetration strategy for the market segment.