Cosmeticon, a U.S.-based firm, has recently started exporting cosmetics to India. Cosmeticon has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Cosmeticon has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of

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Quizplus · Accepted Answer

Cosmeticon is using a price skimming strategy, which involves setting a high price for a new product to target the premium segment of the market that is less sensitive to price. This approach is common for unique or innovative products entering a market without direct competition.