A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.
A)price skimming
B)trial pricing
C)value pricing
D)market-penetration pricing
E)prestige pricing

Question

Quizplus · Accepted Answer

Price skimming strategy involves setting a high initial price for a new product to attract early adopters who are willing to pay a premium price. The firm then gradually reduces the price to appeal to a wider market. This strategy is often used for high-tech products, where early adopters are willing to pay a higher price for the latest technology. Therefore, option A) price skimming is the most appropriate answer.

A Firm Is Using ________ When It Charges a High,premium