A 16-ounce bottle of Prairie Herb vinegar sells for $4.95,and a 16-ounce bottle of Heinz vinegar costs $1.05.Prairie Herb vinegar is new to the market,perceived to be of higher quality,and provides a unique flavour to foods even though it is used in the same way as Heinz vinegar.Prairie Herb vinegar is most likely using which type of policy?

Question

Quizplus · Accepted Answer

Prairie Herb vinegar is using a price skimming policy, where a high price is set for a new product perceived to be of higher quality, to maximize profits from segments willing to pay the high price before it is potentially lowered later on.

A 16-Ounce Bottle of Prairie Herb Vinegar Sells for $4