When microwave ovens were in the introduction stage of the product life cycle, some consumers were willing to pay exorbitant prices for the innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price that customers with a very strong desire for the product were willing to pay. Marketers of microwave ovens were using a ___________pricing strategy.
A)prestige
B)skimming
C)penetration
D)price lining

Question

Quizplus · Accepted Answer

Skimming pricing strategy involves setting the highest initial price that customers with a strong desire for the product are willing to pay. This strategy is commonly used during the introduction stage of the product life cycle. Therefore, the marketers of microwave ovens were using a skimming pricing strategy.

When Microwave Ovens Were in the Introduction Stage of the Product