H&G Co.Ltd.has used a high initial price for its newly launched cellphones.The company hopes to recover its research and development costs with this pricing.This is an example of a _____.
A)price lining strategy
B)price skimming strategy
C)yield management pricing strategy
D)prestige pricing strategy

Question

Quizplus · Accepted Answer

A high initial price is called a price skimming strategy and is used by companies to help recover research and development costs.

H&G CoLtdHas Used a High Initial Price for Its Newly Launched