Match the term with its definition.
-A technique that sets very high prices for a limited period before reducing them to more competitive levels
A)average pricing
B)follow-the-leader pricing strategy
C)freemium strategy
D)markup pricing
E)penetration pricing strategy
F)prestige pricing
G)price lining strategy
H)price skimming strategy
I)product line pricing
J)variable pricing strategy

Question

Quizplus · Accepted Answer

Price skimming strategy sets high prices initially to target early adopters or customers who place a premium on the product's novelty or exclusivity before lowering the price to reach a broader market.

Answer: E
 Penetration pricing strategy sets a low price initially to gain a foothold in the market and attract price-sensitive customers, with the intention to raise prices later once market share is attained.

Match the Term with Its Definition