The Rodkin Corporation has just introduced an innovative new product. In an effort to recoup its investment in R & D, as quickly as possible, Rodkin will MOST likely consider using which approach to pricing?
A) demand based pricing
B) price penetration
C) price maximising
D) value approach to pricing
E) price skimming

Question

Quizplus · Accepted Answer

The best approach for Rodkin Corporation to recoup its investment in R&D as quickly as possible would be to use price skimming. This approach involves setting a high initial price for the new innovative product to attract early adopters and maximize profits, and then gradually lowering the price over time to reach a broader market. This strategy would allow Rodkin to capture the highest possible profit margins from their product and recoup their investment in R&D more quickly.

The Rodkin Corporation Has Just Introduced an Innovative New Product