For precision shooting competitions, Leupold & Stevens, Inc., Canadian manufacturers of rifle scopes, introduced a revolutionary new patented optical system. Competitions are won by hundredths of an inch, so the image seen through the scope is crucial. That's why the Leupold rifle scope with its new optical system is designed to offer an image that is crisp, sharp, flat, and second to none in image contrast. The initial price of the Competition Series scope will be $1,605.40. Which pricing strategy will best attract price-insensitive customers and help Leupold & Stevens recoup its research and development costs?
A)experience curve pricing
B)customary pricing
C)skimming pricing
D)price lining

Question

Quizplus · Accepted Answer

Skimming pricing is a strategy where a higher initial price is set for a new and innovative product with the aim of attracting price-insensitive customers who are willing to pay a premium for the product. This pricing approach can help Leupold & Stevens recoup its research and development costs quickly while also creating a perception of high quality and exclusivity. Therefore, skimming pricing will be the best choice to attract price-insensitive customers and recoup its R&D costs.

For Precision Shooting Competitions, Leupold & Stevens, Inc