A skimming pricing strategy is more commonly used by firms to:
A) reduce the raised prices of products to the original level.
B) set a market-entry price for distinctive goods or services with little or no initial competition.
C) set a relatively low price for a product when they enter new markets characterized by dozens of competing brands.
D) set stable wholesale prices that undercut offers competitors make to retailers.

Question

Quizplus · Accepted Answer

A skimming pricing strategy involves setting high prices initially for a new or innovative product, where there is little or no competition, to maximize profits from early adopters before lowering the price over time as competition increases.

A Skimming Pricing Strategy Is More Commonly Used by Firms