In a _____ pricing strategy,new services are introduced at high prices with large promotional expenditures.
A) Penetration
B) Skimming
C) Prestige
D) Contingency
E) Visible

Question

Quizplus · Accepted Answer

Skimming pricing strategy involves introducing a new product or service at a high price with significant promotional expenditures. This strategy is usually implemented when a company is introducing a unique product that has no direct competition or when there is a high demand for the product. The objective is to generate significant profit margins before competitors enter the market or when the demand for the product is likely to decline.

In a _____ Pricing Strategy,new Services Are Introduced at High