Which of the following is NOT an advantage of penetration pricing?

It helps the company in recovering the research and development costs which are associated with the development of a new product

Option 2 is an advantage of Skimming Method of pricing.
The advantages of penetration pricing to the firm are:
 It can result in fast diffusion and adoption. This can achieve high market rates quickly. This can take the competitors by surprise, not giving them time to react.
 It can create goodwill among the early adopters segment. This can create more trade by word of mouth.
 It creates cost control and cost reduction pressures from the start, leading to greater efficiency.
 It discourages the entry of competitors. Low prices act as a barrier to entry.
 It can create high stock turnover throughout the distribution channel.  This can create critically important enthusiasm and support in the channel.