Skimming pricing refers to
A) setting the lowest initial price possible when introducing a new or innovative product in order to "skim" sales from competitors.
B) setting the highest initial price that customers who really desire the product are willing to pay.
C) setting a low initial price on a new product to appeal immediately to the mass market.
D) the practice of replacing promotional allowances with higher manufacturer list prices.
E) setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Question

Quizplus · Accepted Answer

Skimming pricing involves setting a high initial price for a new or innovative product to target consumers willing to pay more, capturing early adopters and maximizing profits before lowering the price over time.

Skimming Pricing Refers to