Ziffcorp's New Gaming Console Pricing Strategy

What pricing strategy has Ziffcorp adopted for their new gaming console?

A. penetration pricing

B. sustained discount pricing

C. high/low pricing

D. loss-leader pricing

Answer:

Ziffcorp has adopted the pricing strategy of penetration pricing by setting low initial prices to attract customers and gain a large market share.

Ziffcorp, an electronic goods manufacturer, recently launched a new gaming console at a very low price. The company aims to capture as much of the market as possible by offering rock-bottom prices. It aims to compensate for the loss by increasing the sales volume.

In the context of pricing strategies, Ziffcorp has adopted penetration pricing. This pricing strategy refers to setting the initial price of a new product very low to break into the market and attract a large market share. The lower price is expected to draw customers away from existing products or services mainly due to the price advantage.

By choosing penetration pricing, Ziffcorp is strategically aiming to grow its customer base and establish a strong presence in the gaming console market. Despite the potential short-term loss from the low prices, the company anticipates making up for it through increased sales volume over time.