A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
A) a skimming pricing strategy
B) trial pricing
C) price segmentation
D) penetration pricing
E) prestige pricing

Question

Quizplus · Accepted Answer

This is an example of the skimming pricing strategy, as the firm is charging a high price initially to capture the market's early adopters or high-end buyers, and then plans to lower the price over time to appeal to a broader market.

A Firm Is Using ________ When It Charges a High