When microwave ovens were in the introduction stage of the product life cycle,some consumers were willing to pay exorbitant prices for the innovative ovens.Taking advantage of this strong consumer desire,marketers set the price for microwave ovens at the highest initial price that customers with a very strong desire for the product were willing to pay.Marketers of microwave ovens were using a _____ pricing strategy.
A)skimming
B)penetration
C)prestige
D)price lining

Question

Quizplus · Accepted Answer

The skimming pricing strategy is used when a new product is introduced to the market with unique features and benefits, and a relatively high price is charged to consumers who are willing to pay a premium for the product. This is typically used when the product is in the introduction stage of the product life cycle, and the company wants to recoup its investment in research and development as quickly as possible. In this scenario, the marketers of microwave ovens set a high initial price to take advantage of the strong consumer desire for the innovative product.

When Microwave Ovens Were in the Introduction Stage of the Product