The strategy of market-skimming pricing is especially suited for new products because:
A) it provides the firm with pricing flexibility.
B) high prices can be used to connote quality.
C) it is an excellent way to recoup research and development costs.
D) high initial prices can keep demand from outdistancing supply.
E) all of the above are True.

Question

Quizplus · Accepted Answer

Market-skimming pricing is suited for new products because it allows for pricing flexibility, can connote quality through high prices, helps recoup research and development costs, and prevents demand from outstripping supply by setting high initial prices.

The Strategy of Market-Skimming Pricing Is Especially Suited for New