In order to recover research and development costs rapidly and earn high initial profits, SenseTV is setting a high price for its plasma TVs. The pricing strategy SenseTV is using is called _____ pricing strategy.
A) market-minus
B) skimming
C) penetration
D) competitive

Question

Quizplus · Accepted Answer

Skimming pricing strategy involves setting high initial prices to "skim" revenue layers from the market. It is used to recover research and development costs quickly and to maximize profit by targeting early adopters who are less price-sensitive.

In Order to Recover Research and Development Costs Rapidly and Earn