INGenius ATG introduced the microware oven-sized battery recycler in 1999. It was intended for the business market. Companies could buy the recycler and use it to restore alkaline batteries that are not normally recharged. The recycling does not let a battery live forever; but it does give it a charge of about 80 percent of the energy it originally had. Depending on the size of the battery, the recycler can hold up to 96 batteries. It takes 13 hours to recharge any battery. The recycler was introduced at $3,000. When you consider that a pair of alkaline batteries can be purchased for $2, you should suspect that INGenius ATG was using a(n)________strategy.

Question

Quizplus · Accepted Answer

Skimming pricing is a strategy in which a company sets a high price for a new product when it is introduced to the market, with the aim of generating high profits in the short term. This strategy is often used for innovative products with unique features or benefits that are not available from competitors. In this case, the microware oven-sized battery recycler is a new and innovative product that allows companies to restore alkaline batteries, which are not normally rechargeable. The high price of $3,000 suggests that INGenius ATG is using a skimming pricing strategy to maximize profits while the product is still new and has few competitors.

INGenius ATG Introduced the Microware Oven-Sized Battery Recycler in 1999