📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    If a bank sets a very low interest rate initially to

    attract a large number of borrowers and gain market share, it is using:
    A Skimming pricing Correct Answer Incorrect Answer
    B Premium pricing Correct Answer Incorrect Answer
    C Penetration pricing Correct Answer Incorrect Answer
    D Cost-plus pricing Correct Answer Incorrect Answer
    E Psychological pricing Correct Answer Incorrect Answer

    Solution

    Penetration pricing involves setting a low initial price to enter the market quickly and gain customers. Why Other Options Are Incorrect • A: Skimming = High initial price • B: Premium = High price to signal quality • D: Cost-plus = Cost-based calculation • E: Psychological = Price ending tactics Banking Example: New digital lending platforms offering lower introductory rates.

    Practice Next
    More Basics of Marketing Management Questions

    Relevant for Exams:

    ask-question