what types of products are most successful with penetration pricing 
the most elastic goods are often the most successful with penetration pricing these goods often have the largest changes in demand with very subtle changes in price goods such as internet cable banking services groceries airline tickets or hospitality services are often easier to use penetration prices with as small changes in price may more easily swing demand the bottom linepenetration pricing is the short term strategy to lure customers from competitors by offering lower prices though these prices may not be profitable in the long term a company s hope is they can convert the customer into a long term relationship that ultimately yields a profit per consumer 