
Answer-first summary for fast verification
Answer: Penetration pricing
**Explanation:** - **Option A (Dynamic pricing):** Incorrect. Dynamic pricing involves adjusting prices based on real-time demand or other factors, such as off-peak pricing for hotel rooms or surge pricing for ride-sharing. It is not used to sacrifice margins for market share. - **Option B (Freemium pricing):** Incorrect. Freemium pricing offers basic services for free while charging for premium features, commonly seen in digital content like software or games. It does not involve sacrificing margins for market share. - **Option C (Penetration pricing):** Correct. Penetration pricing is a discount pricing strategy where a firm lowers prices to gain market share, often at the expense of short-term margins. This aligns with the scenario described in the question.
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