When microwave ovens were in the introduction stage of their product life cycle, some consumers were willing to pay exorbitant prices for these innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price possible. Marketers of microwave ovens used a __________ pricing strategy.
A)skimming
B)penetration
C)prestige
D)price lining
E)bundle

Question

Quizplus · Accepted Answer

The pricing strategy used by marketers of microwave ovens was skimming, which involves setting a high initial price for a new product or service with the intention of generating maximum revenue from the early adopters or innovators in the market. This strategy takes advantage of consumers' willingness to pay a premium price for a new and innovative product, before competitors enter the market and start competing on price.

When Microwave Ovens Were in the Introduction Stage of Their