Setting the highest initial price that customers who really desire the product are willing to pay when introducing a new or innovative product is referred to as
A) a skimming strategy.
B) a penetration strategy.
C) a price-lining strategy.
D) an experience-curve pricing strategy.
E) a prestige pricing strategy.

Question

Quizplus · Accepted Answer

A skimming strategy involves setting a high initial price for a new or innovative product to maximize profits from customers willing to pay more before gradually lowering the price.

Setting the Highest Initial Price That Customers Who Really Desire