A skimming pricing strategy permits a small business owner to correct pricing mistakes more quickly and easily than a penetration pricing strategy.

Question

Quizplus · Accepted Answer

Skimming pricing refers to setting a high price for a product or service initially, and then gradually lowering it over time. This pricing strategy allows small business owners to adjust prices more easily and quickly if they are not achieving the desired results. In contrast, penetration pricing involves setting a low price initially to attract customers and gain market share, but it can be more difficult to increase prices later without losing customers.

A Skimming Pricing Strategy Permits a Small Business Owner to Correct