Question
Accountancy Question on Basics of Accounting
The pricing strategy that seeks to exploits economics of scale by pricing the product below the competitor's in one market and adopting a penetration strategy in another is called:
A
penetration pricing strategy
B
Differential pricing strategy
C
Product line pricing strategy
D
Geographic pricing strategy
Answer
Differential pricing strategy
Explanation
Solution
The correct answer is (B) : Differential pricing strategy.