penetration pricing

Definition

Charging a low initial price for a new product in order to attract customers and build market share.

Use penetration pricing in a sentence

They had some penetration pricing technique going on and it made everyone in the area cringe because it was odd.

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The penetration pricing strategy was effective as many customers were unaware of the brand's unique quality so the strategy was effective.

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Our newest exercise ball on the market is set up with penetration pricing in order to have a great first month of sales so that we can really get the product in front of the right demographic.

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