penetration price

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