Financial

penetration price

a pricing policy that involves charging a comparatively low PRICE for a product in order to secure growing sales and a high market share. This policy will be adopted by a firm where consumers are expected to be price sensitive, that is, demand is price elastic. See PRICE-ELASTICITY OF DEMAND, PRODUCT LIFE CYCLE, SKIMMING PRICE.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

Mentioned in

dumping
market conduct
market penetration
market penetration pricing
market-skimming pricing
penetration
Penetration Pricing
price-elasticity of demand
pricing objectives
product life cycle
skimming price

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