CLEP Marketing

Answer: C - A new urban and skater wear company opens three stores in a mid-sized city. The company reduces its pricing by an average of 15% across all merchandise in the three stores in what is termed market penetration pricing strategy. In this strategy, a company lowers its prices as an overall marketing strategy when entering a market for the first time or introducing new goods and services. The goal of market penetration pricing is to establish the product in the market and use pricing as a primary force behind this establishment. Usually, this strategy is time sensitive and combined with other pricing and promotion strategies.