company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and/or to __________.

Question

Quizplus · Accepted Answer

Skimming strategy involves setting high prices initially to capitalize on the price insensitivity of early buyers who are willing to pay a high price for a new, innovative product. This helps the company recover costs of development and earn higher profits during the introduction stage.

Company May Choose a Skimming Strategy During the Introduction Stage