Which of the following is a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?
A)Penetration pricing
B)Price skimming
C)Price discrimination
D)Status quo pricing

Question

Quizplus · Accepted Answer

Price skimming is a pricing policy where a firm charges a high introductory price, often coupled with heavy promotion. This strategy is often used when a company is introducing a new product or service, where there is relatively little competition, and the company aims to recoup its development costs quickly. Over time, as competition increases or the market becomes more saturated, the company may reduce its price to remain competitive.

Which of the Following Is a Pricing Policy Whereby a Firm