The two most common pricing alternatives for products in the introduction stage of the product life cycle are __________ and __________.

Question

Quizplus · Accepted Answer

Skimming pricing involves setting a high price for a new product in order to generate maximum revenue from early adopters, while penetration pricing involves setting a low price to quickly gain market share. These are the two most common pricing strategies for products in the introduction stage, as companies are often focused on building awareness and demand for the product while also recouping their development costs.

The Two Most Common Pricing Alternatives for Products in the Introduction