For precision shooting competitions,Leupold & Stevens,Inc.,Canadian manufacturers of rifle scopes,introduced a revolutionary new patented optical system.Competitions are won by hundredths of an inch,so the image seen through the scope is crucial.That's why the Leupold rifle scope with its new optical system is designed to offer an image that is crisp,sharp,flat,and second to none in image contrast.The initial price of the Competition Series scope will be $1,605.40.Which pricing strategy will best attract price-insensitive customers and help Leupold & Stevens recoup its research and development costs?
A)price lining
B)experience curve pricing
C)customary pricing
D)skimming pricing

Question

Quizplus · Accepted Answer

Skimming pricing would be the best choice for Leupold & Stevens to attract price-insensitive customers and recoup their research and development costs. Skimming pricing involves setting a high price for a new and innovative product to maximize profits from early adopters and price-insensitive customers. As Leupold & Stevens' target market for this product consists of precision shooting enthusiasts who are willing to pay a premium for top-quality equipment, skimming pricing strategy would be effective in attracting these customers while recouping their research and development costs.

For Precision Shooting Competitions,Leupold & Stevens,Inc