Penetration pricing is the practice of setting a relatively low price to induce greater adoption by...

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Economics

Penetration pricing is the practice of setting a relatively lowprice to induce greater adoption by consumers and, thus, gaingreater market shareâ€ (Douglas, 2012). Utilizing a penetrationpricing strategy would be more beneficial given the exposure itwould provide to the new product. In comparison, I further believethat Vicks NyQuil is more of a recommended brand in householdsduring the cold and flu season, so introducing Alka-Seltzer Plus ata lower price and more symptom relief will have great marketattention for the product and brand. In the short run, the brandwill garnish the attention needed in the market, and the ability toincrease profitability in the long run.

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Introduction The ultimate goal of each producer in the market is to allow for increased profits The end goal of producers is profit maximization for which they use various pricing strategies to allow them for increased sales and overall growth Some companies prefer selling See Answer

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