Using penetrating pricing strategy

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Few years back, HP launched four new computer models aimed at the Chinese and Indian consumer markets to create loyal customers as these markets emerged. Using penetrating pricing strategy, HP priced the new computers under $400, significantly less than its computers sell for in the United States. Do you think this type of pricing strategy can be successful? Why or why not? What steps do you predict HP will take as it sets prices for products in these markets in the future?

Reference no: EM131101568

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