Valeo Fashions has just introduced a new line of fashion dresses for teens.It will initially enter the market at high prices in a pricing strategy.
A)demographic
B)psychological
C)market- skimming
D)competitive market
E)market- penetration

Question

Quizplus · Accepted Answer

Market-skimming pricing strategy involves setting high initial prices for new products or services with the intention of targeting consumers who are willing to pay a premium price. This strategy is often used for innovative, high-quality products or services where there is little or no competition. Therefore, Valeo Fashions' decision to introduce its new line of fashion dresses for teens at high prices indicates that it is using a market-skimming pricing strategy.

Valeo Fashions Has Just Introduced a New Line of Fashion