The essence of penetrative pricing in business

[cherry123]

The adoption of penetration pricing by businesses is because of the following:

To capture existing customers for a similar products using a lesser price strategy.

it is to use this strategy of low prices for selling initially a new product to make people or customers be aware of a new product.

Lastly, it is to entice people to try a new product and build market share

 

[Magnus2022]

The essence of penetrative pricing is to capture customers and penetrate the market. Penetrative pricing is a very formidable strategy which can help a product enter market very fast and very quickly. Penetrative marketing works better where there is high level of competition.

 

[cherry123]

Yesh this strategy help a product enter market very fast and very quickly which is like the whole essence of penetrative pricing. it helps to capture customers and penetrate the market.

 

[Bisolami]

Yesh this strategy help a product enter market very fast and very quickly which is like the whole essence of penetrative pricing. it helps to capture customers and penetrate the market.

The product will be known very fast within a little time and I think it is cool that way.

 

[cherry123]

Thsts the whole essence it is for the product to be known very fast within a little time and I think it is will make the idea of the product to be accepted too

 

[IB D]

It is a good marketing strategy but you have to be careful not to start off your business with losses. Let the reduction in price just be slight. It would attract more customers..

 

[Stardom22]

This strategy is one of the best strategies to be used when introducing new products or business to the existing market. It's deemed so expensive as sometimes the seller might incur some losses with it.

 

[Shavkat]

It is a good marketing strategy but you have to be careful not to start off your business with losses. Let the reduction in price just be slight. It would attract more customers..

You are right. In some business tactics, a business owner should do three times the wholesale price of the items. In this way, they can able to adjust to lower prices

 

[eldavis]

This is a business strategy where most business owners introduced a new product to the market with a price that is not too high, a price that customers would be able to afford with ease.

 

[uptrendfinancialsignal]

Penetrative pricing is critical for businesses because it will enhance business profit.

 

[Shavkat]

This is a business strategy where most business owners introduced a new product to the market with a price that is not too high, a price that customers would be able to afford with ease.

You have a point here. Once the target customers do like the affordable products, the business owners will increase the prices gradually. I am sure it happens in sales industry and in the market.