Questions: Which of the following is the definition of penetration pricing? a.) When the price varies according to location b.) When a company sets a low price for new products so the organization can enter and gain traction within the market c.) When the price of a product is higher than others on the market d.) When the competition for products leads to similar pricing

The answer is b.) When a company sets a low price for new products so the organization can enter and gain traction within the market.

This option describes geographic pricing, where prices vary based on location due to factors like shipping costs or local market conditions.

This is the correct definition of penetration pricing. It involves setting a low initial price to attract customers and gain market share quickly. The goal is to entice customers away from competitors and establish a foothold in the market.

This describes premium pricing or price skimming, where a product is priced higher than competitors to create a perception of higher quality or exclusivity.

This describes competitive pricing, where prices are set based on competitors' pricing strategies, often leading to similar pricing across the market.