The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as
A) penetration pricing.
B) price skimming.
C) prestige pricing.
D) sample pricing.
E) odd pricing.

Question

Quizplus · Accepted Answer

Price skimming involves setting a high price for a new product during the introduction stage. This strategy is often used when products have unique features or benefits that differentiate them from competitors and allow for a premium price. As demand for the product increases over time, the price can be gradually lowered to attract more price-sensitive customers.

The Strategy of Charging the Highest Possible Price for a Product