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Which pricing strategy involves initially setting a low price to gain market share and then gradually increasing the price?
  • a)
    Psychological Pricing
  • b)
    Economy Pricing
  • c)
    Penetration Pricing
  • d)
    Premium Pricing
Correct answer is option 'C'. Can you explain this answer?
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Which pricing strategy involves initially setting a low price to gain ...
Penetration Pricing is a strategy where products are initially priced low to attract a larger market share, and then the price is increased over time. This approach helps in quickly capturing customers and establishing a strong presence in the market. Companies like France Telecom and Sky TV have used this strategy to gain a substantial customer base before gradually raising prices.
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Which pricing strategy involves initially setting a low price to gain market share and then gradually increasing the price?a)Psychological Pricingb)Economy Pricingc)Penetration Pricingd)Premium PricingCorrect answer is option 'C'. Can you explain this answer?
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