When Burroughs Wellcome introduced the first anti-AIDS drugs, it initially set the price at $10,000 for a year's supply. Burroughs Wellcome was probably pursuing a __________ pricing strategy.
A) skimming
B) introductory
C) slotting allowance
D) market penetration
E) cost-based

Question

Quizplus · Accepted Answer

Burroughs Wellcome was setting a high price initially to skim the market, meaning they were targeting the early adopters who were willing to pay a premium price for a solution to a pressing problem. This pricing strategy takes advantage of the demand for the new product and maximizes profits in the short term.

When Burroughs Wellcome Introduced the First Anti-AIDS Drugs, It Initially