The main disadvantage with penetration pricing is that it establishes long-term price expectations definition of price penetration the productand image preconceptions for the brand and company. The pricing strategy was so effective that traditional providers such as Blockbuster soon were edged out of the market. Lets take an example of penetration pricing strategies being put to work. Some commentators claim that penetration pricing attracts only the switchers definition of price penetration hunters and that they will switch away as soon as the price rises. Retrieved from " https:
Penetration pricing is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth. Penetration pricing is a pricing strategy that is used to quickly gain market share by setting an initially low price to entice customers to purchase from. Definition: Price Penetration. This type of strategy involves pricing a product low so as to attract customers towards the brand. So the main aim is not to maximize .
You often see the tagline "special introductory offer" – the classic sign of penetration pricing. The aim of penetration pricing is usually to increase. Definition: Price Penetration. This type of strategy involves pricing a product low so as to attract customers towards the brand. So the main aim is not to maximize . By Gael Grasset, July Penetration pricing is a very aggressive type of pricing. When using this method, a firm first sets its prices at a very low level.