A marketing strategy used to set deliberate high prices for new products is referred to as ________.
A) market holding
B) penetration pricing
C) market skimming
D) cost-plus pricing

Question

Quizplus · Accepted Answer

Market skimming is a pricing strategy that involves setting high prices for new products to capture the maximum revenue from the market before competitors enter. This strategy is often used for products that have unique features or technological advancements, as there is a limited market of early adopters willing to pay more for the latest and greatest product. Eventually, as competitors enter the market and supply increases, the price will be lowered to attract a broader range of customers.

A Marketing Strategy Used to Set Deliberate High Prices for New