When Polaroid comes out with a new model in a series, it sets an initial price 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 because it is setting a high initial price for its new model and then gradually lowering the price over time. This is a common strategy for companies introducing new and innovative products in the market.

When Polaroid Comes Out with a New Model in a Series