A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay to obtain is called:
A)price fixing.
B)price skimming.
C)price discrimination.
D)bait and switch.
E)predatory pricing.

Question

Quizplus · Accepted Answer

Price skimming is a strategy in which a new product or service is sold at a high price initially, targeting innovators and early adopters who are willing to pay a premium to have the latest and greatest. This can help a company to recover its development costs quickly and establish a premium brand image. As more competitors enter the market, the company may lower its price to attract the mass market.

A Strategy of Selling a New Product or Service at a High