Price ________ involves charging a high price for a product initially,then lowering the price over time.
A) discrimination
B) penetration
C) predation
D) skimming
E) targeting

Question

Quizplus · Accepted Answer

The strategy described in the question is called price skimming. This strategy is often used for innovative or high-tech products, where the company wants to recover the development costs and maximize profits before competitors enter the market. The company starts with a high price to capture the segment of the market that is willing to pay a premium for the product, and then gradually lowers the price to attract more price-sensitive customers.

Price ________ Involves Charging a High Price for a Product