Hallmark was the official supplier of flowers at the last Winter Olympics.It was the first time that it has participated in the Olympics.Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch.Consumers were able to buy a smaller version of this same bouquet at the Hallmark Web site for $74.95.The Olympic bouquet that consumers could buy contains two dozen yellow roses, yet you can buy two dozen yellow roses for less than $35 at most supermarkets.If Hallmark is treating the Olympic bouquet as an innovative product, then it is using which demand-oriented approach to pricing?

Question

Quizplus · Accepted Answer

Hallmark is using skimming pricing strategy as they are pricing their Olympic bouquet at a premium price as it is treated as an innovative product. This strategy is used to target early adopters who are willing to pay a high price for new and unique products.

Hallmark Was the Official Supplier of Flowers at the Last