Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. To know more,
http://en.wikipedia.org/wiki/Penetration_pricing
The introduction price may even be below cost price for the purpose of making forceful entry in market. Thus penetration price has also an element of marketing and advertising
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
