When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.
A) market-skimming
B) cost-plus
C) market-segmentation
D) market-penetration
E) competitive

Question

Quizplus · Accepted Answer

The market-skimming pricing strategy involves setting a high initial price for a new product to attract early adopters and generate high profits. The price is then gradually reduced over time to appeal to a wider customer base.

When a Company Sets a High Price for a New