A shortage of blood for transfusions for injured animals has resulted in the introduction of a synthesized product called Oxyglobin,which can be used effectively as a blood replacement.The manufacturer of the product has put a high price on the product in order to recoup its research and development costs.Which type of policy is the manufacturer of Oxyglobin using?

Question

Quizplus · Accepted Answer

Price skimming is a strategy in which a company sets a high price for a new product in order to recoup the costs of research and development. This is exactly what the manufacturer of Oxyglobin is doing by pricing the product high due to the high costs associated with its development. The other options (B) price banding, (C) price lining, and (D) penetration pricing do not fit the scenario described in the question.

A Shortage of Blood for Transfusions for Injured Animals Has