If a producer's marketing manager doesn't know the shape of the demand curve for a new product, the initial price level policy should probably be a(an) ______________ policy.
A) flexible-pricing
B) target-return pricing
C) introductory pricing
D) penetration price
E) skimming price

Question

Quizplus · Accepted Answer

A skimming price policy involves setting a high initial price for a new product to "skim" revenue layers from the market. This approach is often used when the demand curve is unknown, as it allows the producer to start with high margins and then adjust prices downward if necessary to capture additional market segments.

If a Producer's Marketing Manager Doesn't Know the Shape of the Demand