A company with a new product decides to set the initial price high because there are some customers who will pay this high price for a newly introduced product. This is an example of
A) Price gouging
B) Predatory pricing
C) Penetration pricing
D) Price skimming

Question

Quizplus · Accepted Answer

Price skimming is a strategy where a company sets a high initial price for a new product to maximize profits from customers willing to pay more before gradually lowering the price.

A Company with a New Product Decides to Set the Initial