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

Question

Quizplus · Accepted Answer

A skimming pricing strategy involves setting a high price for a new and innovative product to recoup the costs of research and development quickly. In this case, Burroughs-Welcome was the first to introduce anti-AIDS drugs, and they set a high price of $10,000 for a year's supply, indicating a skimming pricing strategy intended to maximize profits while demand was high.

When Burroughs-Welcome Introduced the First Anti-AIDS Drugs,they Initially Set the Price