Pros and cons of Penetrative pricing

[cherry123]

Pros of Penetration Pricing
The strategy is the fastest means of converting a customer

This strategy can be adopted by different types of companies

As the low-price provider, its foster brand recognition

it does benefit consumers and foster economies of scale for business

Cons of penetrative pricing

Business can experience short-term losses

This method might not necessarily keep the customers they might still movec away as easily as they were lured

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[Magnus2022]

One of the advantages of penetrative pricing, is that help to introduce new product to the market relatively fast. Once there is a price difference, customers will like to try the new product. Penetrative pricing don't have any demerit I can think of.

 

[cherry123]

Yesh Penetrative pricing aid with the introduction of new product to the market very quickly and fast. customers will like to try the new product with it's low price now