Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the ________ strategy.
A) market pricing
B) price leadership
C) skimming price
D) penetration price
E) bundling

Question

Quizplus · Accepted Answer

The skimming price strategy involves setting a high price for a new product in order to maximize profits from early adopters who are willing to pay a premium for the newness and perceived quality of the product. This strategy is consistent with Gourmet Pets' approach of targeting a market that values perceived quality over actual product cost and being the first firm to enter the market, without direct competition.

Gourmet Pets Feels Its Target Market Is More Concerned with Perceived