________ involves setting an initial high price to cover new product costs and generate a profit.
A) Price lining
B) Penetration pricing
C) Price skimming
D) Odd-even pricing

Question

Quizplus · Accepted Answer

Price skimming involves setting a high initial price for a new product to cover the costs of development and generate a profit. As demand for the product increases, the price can be gradually lowered to attract more price-sensitive customers. This strategy is often used for innovative products with unique features or benefits that appeal to early adopters willing to pay a premium price.

________ Involves Setting an Initial High Price to Cover New