market penetration pricing

market penetration pricing

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 can be adopted by a firm where consumers are price sensitive. More specifically such a tactic may be used as a means of securing entry to a market, or where its product has moved into the growth phase of its PRODUCT LIFE CYCLE. Contrast MARKET SKIMMING PRICE. See PRICING OBJECTIVES, PRICING METHODS, DUMPING, MARKET ENTRY, ELASTICITY OF DEMAND, MARKET PENETRATION.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson