For which of the following situations would a price skimming strategy be most appropriate?
A)the addition of a new comic book series with an obviously gay hero
B)the introduction of a new brand of bottled water
C)the elimination of demand for low-wattage light bulbs
D)the introduction of a unique, roomy automobile model that has extremely low energy and fuel costs

Question

Quizplus · Accepted Answer

A price skimming strategy is most appropriate when a company introduces a new and unique product with strong value proposition, such as an automobile model with low energy and fuel costs. This strategy involves initially setting a higher price to capture the early adopters and then gradually lowering the price to appeal to a broader market. The other options do not involve such a unique value proposition and do not justify a price skimming strategy.

For Which of the Following Situations Would a Price Skimming