____ is where a higher price is charged at the beginning of a product's life cycle.
A)Penetration pricing
B)Predatory pricing
C)Price skimming
D)Target costing

Question

Quizplus · Accepted Answer

Price skimming is where a higher price is charged at the beginning of a product's life cycle, gradually lowering the price as competition enters the market. Penetration pricing is the opposite, where a lower price is set initially to attract customers and gain market share. Predatory pricing involves setting prices so low that competitors are driven out of the market, and target costing is a cost management strategy for determining the maximum cost of a product based on the price that customers are willing to pay.

____ Is Where a Higher Price Is Charged at the Beginning