While the prices for most wine brands were falling, and restaurants were canceling wine orders for bottles that cost over $25 apiece, Nickel & Nickel launched a new wine brand selling at $125 per bottle. The goal of this high price was to denote quality and to appeal to people who perceive themselves as wine connoisseurs. Nickel & Nickel used a _____ strategy for its new wine.
A) cost-plus
B) marketing-skimming
C) market-absorption
D) marginal-cost
E) market-penetration

Question

Quizplus · Accepted Answer

Nickel & Nickel employed a market-skimming strategy by setting a high price for their new wine brand to denote quality and target a specific segment of the market that perceives themselves as connoisseurs, rather than trying to capture a large market share with lower prices.

While the Prices for Most Wine Brands Were Falling, and Restaurants