The two most common pricing alternatives for products in the introduction stage of the product life cycle are _________ and _________.

Question

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Skimming pricing involves setting a high price for a product at launch to maximize profits from early adopters who are willing to pay a premium for the product's novelty. Penetration pricing, on the other hand, involves setting a low price for a new product in order to quickly gain market share and attract cost-conscious consumers. These two pricing strategies represent the most common options for products in the introduction stage, allowing businesses to choose between maximizing short-term profits or setting the stage for long-term success.

The Two Most Common Pricing Alternatives for Products in the Introduction