Penetration pricing strategy
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Penetration pricing is a marketing strategy implemented to draw customers to a new product or service.
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Description:Here are some of the negative consequences that could occur with penetration pricing. Adoption is like diffusion, but it concentrates more on the emotional acknowledgment whereas diffusion depends on the acceptance from consumers of the recent product or service. Some even bundle these deals alongside cable, internet, and smart phone packages. In the general merchandise category, Walmart is a leader in penetration pricing. The product will face stiff competition soon after introduction. Wider Audience Penetration pricing is also an effective strategy for firms looking to enter new market segments.