CIMAPRO19-P02-1 Exam - Topic 8 Question 117 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 117
Topic #: 8

A company has just launched a new product at a selling price that is designed to rapidly gain market share and to discourage other competitors from entering the market.

Which pricing strategy is the company using?

APenetration pricing

BLoss leader

CMarket skimming

DPremium pricing

Show Suggested Answer

Suggested Answer: A

by Kenneth at Oct 31, 2025, 12:03 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Louisa

3 months ago

True, but penetration pricing is more strategic for long-term growth.

upvoted 0 times

...

Sabrina

3 months ago

But what about B) Loss leader? It could also apply if they sell at a loss to draw in buyers.

upvoted 0 times

...

Broderick

4 months ago

Not sure if this will work long-term, though.

upvoted 0 times

...

Thora

4 months ago

Wait, are they really trying to discourage competitors? That’s bold!

upvoted 0 times

...

Louis

4 months ago

Seems like a smart move to me!

upvoted 0 times

...

Yvonne

4 months ago

I think it's more of a loss leader strategy.

upvoted 0 times

...

Dewitt

4 months ago

Definitely penetration pricing!

upvoted 0 times

...

Herman

4 months ago

Penetration pricing is the way to go. Gotta play the long game and crush the competition.

upvoted 0 times

...

Jamal

5 months ago

Penetration pricing makes the most sense here. Trying to quickly gain market share and discourage competitors.

upvoted 0 times

...

Ruthann

5 months ago

Definitely penetration pricing. Gotta undercut the competition to dominate the market!

upvoted 0 times

...

Felix

5 months ago

I’m stuck between A and B. I know penetration pricing is for market share, but loss leader sounds like it could fit too.

upvoted 0 times

...

Mertie

5 months ago

I feel like this is similar to a practice question we did on pricing strategies. I’m leaning towards A) Penetration pricing too.

upvoted 0 times

...

Audria

5 months ago

I’m not entirely sure, but I remember something about loss leader pricing being used to attract customers. Could that be it?

upvoted 0 times

...

Mammie

6 months ago

Yeah, I agree! Lower prices attract more customers right away.

upvoted 0 times

...

Mabelle

6 months ago

I think it's A) Penetration pricing. It makes sense for gaining market share quickly.

upvoted 0 times

...

Clare

6 months ago

I'd say it's a toss-up between penetration pricing and loss leader. Depends on if they're actually losing money on the product.

upvoted 0 times

...

Billi

6 months ago

I think the answer might be A) Penetration pricing since it’s about gaining market share quickly.

upvoted 0 times

...

Elenor

6 months ago

This question is testing our understanding of pricing strategies. I'm going to carefully consider the details provided and eliminate the options that don't fit before selecting my final answer.

upvoted 0 times

...

Jill

7 months ago

I'm a bit confused on this one. Is premium pricing ever used to rapidly gain market share and discourage competitors? I'll have to review my notes on the different pricing strategies.

upvoted 0 times

...

Martha

7 months ago

Okay, the key here is that the company is trying to discourage competitors from entering the market. That makes me think this is more of a market skimming strategy than a penetration pricing one.

upvoted 0 times

...