Valeo Fashions has just introduced a new line of fashion dresses for teens. The line will initially enter the market at high prices in a ________ strategy.

Question

Quizplus · Accepted Answer

The high prices indicate that the company is adopting a skimming price strategy, where they set a high price initially to capitalize on the demand from early adopters and make high profits before gradually lowering the price to reach a wider market.

Valeo Fashions Has Just Introduced a New Line of Fashion