+2 votes
in Class 12 by kratos

How does the Penetrating Price Method of pricing facilitate in expanding the market?

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+4 votes
by kratos
 
Best answer

Penetrating Price Method of pricing is one in which the price of the product is decided lower than the original price of the product with minimal of profit. This method facilitates in expanding the market because the main aim of enterprise to penetrate into the market covering large area by attracting as many customers as possible at the very outlet. The sale is expected to have a high turnover, bring high returns on investment and the necessary profit. Example: Nirma washing powder.

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