Setting the highest initial price,that customers who really desire the product are willing to pay,when introducing a new or innovative product is referred to as a(n)
A) skimming strategy.
B) penetration strategy.
C) price-lining strategy.
D) experience-curve pricing strategy.
E) prestige pricing strategy.

Question

Quizplus · Accepted Answer

The described pricing strategy is known as skimming strategy, which involves setting a high initial price for a new or innovative product to attract early adopters who are willing to pay a premium price for the product. As the demand from this target market segment is satisfied, the price can be gradually reduced to attract wider markets.

Setting the Highest Initial Price,that Customers Who Really Desire the Product