When Warren Peace learned of the difficulty of capturing a near-perfect round for ballistics matching to weapons used in crimes, he decided to develop a system for testing bullets and firearms. After much trial-and-error and several costly prototypes that were ineffective, he developed a ballistic testing unit. He priced each individual unit at $12,000, and very few law enforcement agencies can afford to spend that much. Peace is using a _____ strategy.
A) cost-plus
B) marketing-skimming
C) market-absorption
D) marginal-cost
E) market-penetration

Question

Quizplus · Accepted Answer

Warren Peace is using a market-skimming strategy by setting a high price for a new and innovative product, targeting those willing to pay more at the initial stage, before possibly lowering prices later as the market expands or competition increases.

When Warren Peace Learned of the Difficulty of Capturing a Near-Perfect