When Polaroid comes out with a new model in a series, it sets an initial price, which is very high and then gradually lowers the price.Polaroid is initially using which pricing strategy?
A) penetration pricing
B) prestige pricing
C) price lining
D) premium pricing
E) price skimming

Question

Quizplus · Accepted Answer

Polaroid is using price skimming, which involves setting a high initial price for a new product and then gradually lowering it over time. This strategy is often used for products that are innovative or have limited competition, allowing the company to capture early adopters willing to pay a premium price before lowering the price to attract a wider audience.

When Polaroid Comes Out with a New Model in a Series