Penetration pricing means charging a relatively low price for a product as a way to reach the mass market. The low price is designed to capture a large share of a substantial market. Thus, penetration pricing:
A. tends to be more effective in a less price-sensitive market
B. tempts competitors to enter the market
C. provides a large profit per unit sold
D. recoups product development costs quickly
E. tends to lower production costs
Answer: E
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