Once a company has invested time and money developing a unique new product, in order to recoup some of the high R&D costs, they will likely use a:
A) skimming pricing strategy.
B) penetration pricing strategy.
C) sliding-down-the-demand-curve pricing strategy.
D) discount pricing strategy.

Question

Quizplus · Accepted Answer

A skimming pricing strategy involves setting a high price for a new, unique product in order to recoup some of the high R&D costs. This allows the company to maximize profits from the early adopters who are willing to pay a premium for the product. As competition increases, the company can gradually lower the price to capture more market share.

Once a Company Has Invested Time and Money Developing a Unique