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 penetration price strategy.

Question

Quizplus · Accepted Answer

The decision to charge a high price is consistent with a skimming price strategy, not a penetration price strategy. Penetration pricing involves setting a low price to gain market share quickly, while skimming involves setting a high price to maximize profits from early adopters.

Gourmet Pets Feels Its Target Market Is More Concerned with Perceived