A strategy of charging a high introductory price for a new product that invites eventual competition is called price:
A)escalation
B)kiting
C)skimming
D)penetration
E)enhancement

Question

Quizplus · Accepted Answer

Price skimming involves setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price. It makes sense when a product is novel and the market is less price sensitive.

A Strategy of Charging a High Introductory Price for a New