A marketer would most likely use a penetration pricing strategy to ________.

A) ensure that the firm can increase prices once demand decreases
B) appeal to customers with low price sensitivity
C) gain long-term advantages of scale
D) minimize the risk of substitution

Penetration Pricing

A pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and stimulate growth.

Price Sensitivity

The degree to which the price of a product affects consumers' buying behaviors or the demand for the product.

Substitution Risk

The potential loss or decrease in market share due to consumers opting for alternative products or services.