![]() Both can make it difficult to raise prices later. Another potential disadvantage is that the low profit margins may not be sustainable long enough for the strategy to be effective. In this policy, the product’s price is fixed at lower levels to obtain market share. The main disadvantage of penetration pricing is that it establishes long-term price expectations for the product and image preconceptions for the brand and company. Penetration pricing is a pricing policy a new entrant in the market utilizes.
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