A smartphone manufacturer introduced a new device into the marketplace with pricing set according to the skimming approach. The CEO of the company reviews financial reports from the device and notes that the pricing approach used is not cost-effective for the company. How should the CEO adjust the pricing strategy for this device?
A) Drop the price
B) Increase the price
C) Offer an everyday low price option
D) Remarket the device under a private label
E) Match the price to the competitions' price

Question

A smartphone manufacturer introduced a new device into the marketplace with pricing set according to the skimming approach. The CEO of the company reviews financial reports from the device and notes that the pricing approach used is not cost-effective for the company. How should the CEO adjust the pricing strategy for this device? ​
A) Drop the price
B) Increase the price
C) Offer an everyday low price option
D) Remarket the device under a private label
E) Match the price to the competitions' price

Quizplus · Accepted Answer

The skimming pricing strategy involves setting a high price initially and then gradually lowering it. If it's not cost-effective, dropping the price can help increase sales volume and market penetration.

A Smartphone Manufacturer Introduced a New Device into the Marketplace