In the context of product considerations in pricing, _____ is an approach to pricing in which a seller charges a relatively high price on a new product and is used when demand for the product is price inelastic.
A) price fixing
B) line pricing
C) a penetration policy
D) a skimming policy

Question

Quizplus · Accepted Answer

A skimming policy is an approach to pricing in which a seller charges a relatively high price on a new product and is used when demand for the product is price inelastic. This approach allows the seller to maximize profits by targeting early adopters and those willing to pay a premium for the new product. As demand becomes more elastic, the seller may gradually lower the price to capture a broader market.

In the Context of Product Considerations in Pricing, _____ Is