A form of pricing high, this strategy is used for new products that have no competition:
A)customer-led
B)competition-led
C)skimming
D)loss-leader

Question

Quizplus · Accepted Answer

Skimming is a form of pricing high where a company sets a high initial price for a new product that has no competition or has a unique selling proposition. This pricing strategy is often used to recoup the costs of research and development and to maximize profits in the early stages of a product's life cycle. As competition enters the market, the company may lower its prices to remain competitive.

A Form of Pricing High, This Strategy Is Used for New