A startup company Wiivv makes custom, 3D-printed insoles for shoes. Wiivv decided to price its product using
Question:
A startup company Wiivv makes custom, 3D-printed insoles for shoes. Wiivv decided to price its product using the penetration strategy. Instead of charging $175 like other custom insoles, it started offering its product at $60. Within one month, over 2,700 people purchased Wiivv's product and told their friends about it. Stock was flying out the door, which made Wiivv's distribution channel partners happy. What advantage did Wiivv tap into by selecting the penetration pricing strategy
a. It created a predictably steady turnover of stock for the distribution channel.
b. It generated demand from word of mouth by the goodwill created among innovators and early adopters.
c. It created a predictably steady diffusion and adoption throughout the product's life cycle.
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura