_____ is a strategy in which a company starts with a high price to capture uniqueness and competitive advantage, and then drops the price as competitors enter the market in order to stay ahead of competition.
A) Price skimming
B) Demand-based pricing
C) Product bundle pricing
D) Captive product pricing
E) Consumer -based pricing

Question

Quizplus · Accepted Answer

Price skimming is a pricing strategy where a firm charges a high initial price for a product, then gradually lowers the price over time. This approach is often used to recover the costs of development quickly, take advantage of a product's novelty and uniqueness, and segment the market based on price sensitivity before competitors enter the market.

_____ Is a Strategy in Which a Company Starts with a High