When a higher price is charged at the beginning of a product's life cycle it is called:
A)Penetration pricing
B)Predatory pricing
C)Target costing
D)Price skimming

Question

Quizplus · Accepted Answer

When a higher price is charged at the beginning of a product's life cycle it is called price skimming. This strategy allows a company to generate higher profits from early adopters who are willing to pay a premium for the product. As the demand for the product begins to plateau, the company can then lower the price to attract more price-sensitive customers.

When a Higher Price Is Charged at the Beginning of a Product's