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Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles. Therefore, Zen is most likely to ______. Group of answer choices initially charge a relatively low price per product introduce the line at a relatively high price per product wait until the current competition weakens join the competition at its peak

Respuesta :

Answer:

initially charge a relatively low price per product

Explanation:

A penetration pricing approach is a strategy in which an organization establishes a low price for a new product at the beginning to attract customers and then, the price is raised. According to this, the answer is that Zen is most likely to initially charge a relatively low price per product.

Zen is most likely to charge a relatively low price per product.

Penetration pricing is a pricing strategy where the price of a new product is very low when compared to similar products. The purpose of this to make consumers buy the new product.

Advantages of penetration pricing

  1. it increases market share of the new firm.  
  2. Sales of the new firm increases.  

Disadvantages of penetration pricing

  1. the new firm might earn a very low profit when compared to similar firms.
  2. once a low price has been set for the good, it might be difficult to increase the price in the future.

A similar question was answered here: https://brainly.com/question/3521758

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