Question

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.

Answer 1

Answer:

Market Penetration Strategy

Explanation:

The reason is that in a market penetration strategy the company tries to attract customers as much as possible. To do so the company offers its product at a lower price than the competitors which helps the company to capture the market share very quickly and at a better position. The Johnson boats must pursue market penetration strategy because it helps in capturing market share very quickly and achieve maximum demand for its product.

Answer 2

Answer:

The correct answer is market-penetration pricing strategy

Explanation:

Penetration pricing strategy is a pricing policy where the initial price of a product is set relatively low viz-a-viz rival products' prices in order to attract a large of customers as well as build a large market share for the new product in no distant time.

The actual price of the product is usually higher the price initially quoted, but such appropriate is not used in the first place because the product awareness has not been created,hence in  creating needed awareness is lower price is accepted