When sales figures for one of the products of Silkskin Cosmetics,a moisturizer,began to fall with low margins and declining volumes,the company decided to raise the price of the moisturizer.As volumes fell further,the company continued to raise prices,thus increasing margins,until it reached a price at which customers refused to buy the product.This pricing strategy is known as ________ pricing.
A)harvest
B)penetration
C)low-cost leader
D)plus-one
E)skim

Question

Quizplus · Accepted Answer

This pricing strategy is known as harvest pricing, where a company raises the price of a product with declining sales and demand to maximize profits from the remaining customers until it is no longer viable to sell the product.

When Sales Figures for One of the Products of Silkskin