Which of the following is an example of penetration pricing?
A) A local furniture store prices its products high and then holds sales such as Red Tag Specials and President's Day Deals.
B) A clothing chain with stores nationwide sells its items for the same price all the time.
C) A soft drink company has developed a way to reseal soft drink cans and has priced the cans lower than its competitors' regular cans to attract customers.
D) A mobile home company priced most of its new two-bedroom models at $79,955. When they weren't selling well, the company dropped the price to $75,955.
E) A tax preparation service charges full price for the first time you use the service and then gives a discount for return visits.
Answer: C
Explanation: C) Penetration pricing is setting a low price to attract many customers and deter competition.
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