A company sells digital music players and is introducing its latest player to the market. The company knows it can't compete head-to-head with Apple and its iPods at $100. It decides to choose a pricing strategy that will capture more of the market by charging a much lower price of $39. It decides to increase the demand for its digital music players in order to take advantage of economies of scale. What type of pricing strategy should the company choose?

Responses:

skim pricing

break-even pricing

penetration pricing