When Murphy's Candies sets a low initial price in order to get its "foot in the door" and quickly attract a large number of buyers,the company is practicing market- skimming pricing.

Question

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Market-skimming pricing involves setting a high initial price to target early adopters and maximize profits before gradually lowering the price to attract more price-sensitive customers. Setting a low initial price is more characteristic of market-penetration pricing, which is used to quickly gain market share and establish the brand.

When Murphy's Candies Sets a Low Initial Price in Order