When Burroughs Wellcome introduced the first anti-AIDS drugs,it initially set the price at $10,000 for a year's supply.Burroughs Wellcome was probably pursuing a(n)__________ pricing strategy.
A) skimming
B) introductory
C) slotting allowance
D) market penetration
E) cost-based

Question

Quizplus · Accepted Answer

Skimming is a pricing strategy where a company sets a high price for a new product when it is introduced to the market in order to maximize profits from the early adopters who are willing to pay a premium. Burroughs Wellcome set the initial price of $10,000 for a year's supply of the first anti-AIDS drugs, suggesting they were pursuing a skimming pricing strategy.

When Burroughs Wellcome Introduced the First Anti-AIDS Drugs,it Initially Set