With examples of each and reasons of its selection,describe under what circumstances would you recommend a penetration policy.
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A penetration pricing policy is most often used by companies which are new entrants in the market and they want to obtain their market share. They introduce the new product at a relatively low price and attract the price sensitive customers. After a specific quantity of the product is sold, its price is raised by some amount as the company has already gained a market share. For example, it often happens that magazines etc are introduced into the market at a particular price and after some months, the prices are increased.
answered 3 months ago
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