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 customer desire, marketers set the price for microwave ovens at the highest initial price that customers with a 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
E)bundle

Question

Quizplus · Accepted Answer

The pricing strategy used by the marketers of microwave ovens is skimming pricing strategy. Skimming pricing strategy is applied in the introduction stage of the product life cycle when there is a strong demand for the product and customers are willing to pay a high price. The main objective of this strategy is to obtain maximum profit before competitors enter the market and commoditize the product.

When Microwave Ovens Were in the Introduction Stage of the Product