Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a
A)skimming strategy.
B)penetration strategy.
C)price-lining strategy.
D)experience-curve pricing strategy.
E)prestige pricing strategy.

Question

Quizplus · Accepted Answer

This is because setting a high initial price to attract the customers who highly value the new product is known as skimming strategy. This strategy is usually adopted by companies when they launch unique or innovative products that have no or very little competition in the market. This pricing approach helps companies to maximize the profits in the initial stage.

Setting the Highest Initial Price That Customers Really Desiring the Product