What is The objective of penetration pricing?

The objective of penetration pricing is to attract customers to a new product by setting a low initial price, thereby quickly gaining market share and customer acceptance. This strategy aims to encourage trial and increase product usage, often with the expectation that volume sales will compensate for the lower price. Once a solid customer base is established, companies may gradually raise prices to improve profitability. Ultimately, penetration pricing seeks to establish a foothold in a competitive market.