Novice Telecom is a manufacturer of cell phones.The company is planning to launch a new model of smart phone and the pre-launch marketing has created much hype in the market.In order to cash in on the hype,the company charges a high price during the initial stages of the product's launch.Identify the pricing strategy this company is using.
A) optimal pricing
B) skim pricing
C) penetration pricing
D) auction pricing
E) freemium pricing

Question

Quizplus · Accepted Answer

A)Skim pricing refers to charging a high price for a new product during the introductory stage and lowering the price later. The company is using skim pricing in this case.
B)Skim pricing refers to charging a high price for a new product during the introductory stage and lowering the price later. The company is using skim pricing in this case.
C)Skim pricing refers to charging a high price for a new product during the introductory stage and lowering the price later. The company is using skim pricing in this case.
D)Skim pricing refers to charging a high price for a new product during the introductory stage and lowering the price later. The company is using skim pricing in this case.
E)Skim pricing refers to charging a high price for a new product during the introductory stage and lowering the price later. The company is using skim pricing in this case.

Novice Telecom Is a Manufacturer of Cell Phones