Answer to Question #319798 in Economics for Bea

Question

During the first week of operations, low-cost airline, Mango, was selling flights at the low price of R169 per one-way ticket. Which pricing adaptation did Mango use when they launched their flights?

Select one:

a.

Skimming prices

b.

Market-price level

c.

Bait prices

d.

Market penetration prices

Answer 1

Market penetration prices is an approach to pricing in which a manufacturer sets a relatively low price for a product in the introductory stage of its life cycle with the intention of building market share.

So, the correct answer is d.