Which pricing strategy is best described as offering lower prices to new customers during a special pricing period, often to attract buyers whose willingness to pay is lower?

• A. Introductory pricing
• B. Price discrimination
• C. Peak-load pricing
• D. Bundling

Answer: (A)

Verified step by step guidance

1. Understand the concept of 'Introductory pricing': This strategy involves setting a lower price for new customers during an initial period to attract buyers who may have a lower willingness to pay.
2. Recognize that 'Price discrimination' refers to charging different prices to different groups based on their willingness to pay, but it is not limited to new customers or a special introductory period.
3. Know that 'Peak-load pricing' involves charging higher prices during periods of high demand and lower prices during off-peak times, which is unrelated to attracting new customers with lower prices.
4. Identify that 'Bundling' means selling multiple products or services together at a combined price, which is different from offering a special lower price to new customers.
5. Conclude that the best description for offering lower prices to new customers during a special pricing period to attract buyers with lower willingness to pay is 'Introductory pricing'.