Competitive Marketing Strategy Question:

Define a penetration pricing strategy.

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Answer:

1. Strategy used to gain as much sales volume as possible as quickly as possible through undercutting competitors' prices.
2. Strategy used to maximize profit.
3. Strategy used to gain as many consumers as possible in the launch phase.
4. All of the above
5. None of the above

Answer: Strategy used to gain as much sales volume as possible as quickly as possible through undercutting competitors' prices.

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Like Amazon.com and egg, the Internet bank, most e-commerce operations offer prices well below those in the high street or mall and are making huge losses. What are the Internet businesses hoping to achieve with their aggressive pricing and is their price advantage likely to be maintained? Which of the following statements are correct and relevant to this pricing strategy?A marketing managers pricing decisions are often influenced by the competitions pricing and their marketing strategies. Which of the following need to be considered when determining price?