Market segments that are willing to pay a premium for the privilege of being the first to own a new product or service are prime candidates for:
A) price maximising.
B) price penetration.
C) price skimming.
D) demand based pricing.
E) value approach to pricing.

Question

Quizplus · Accepted Answer

Price skimming involves charging a high price for a new product or service targeting early adopters or those willing to pay a premium to be the first to own it. This strategy is effective for generating maximum revenue in the short term before competitors enter the market and start to drive prices down.

Market Segments That Are Willing to Pay a Premium for the Privilege