A _____ price policy tries to sell the top of the demand curve at a high price before aiming at more price-sensitive customers.
A) meet competition
B) status quo
C) penetration
D) skimming
E) panning

Question

Quizplus · Accepted Answer

Skimming pricing strategy involves setting a high price for a new product in order to skim maximum revenue from the market before lower-priced competitors enter the market. This strategy is effective when there is limited competition, a unique product offering, or high demand for the product. It is intended to target price-insensitive customers who are willing to pay a premium price for the product.

A _____ Price Policy Tries to Sell the Top of the Demand