Which of the following is a strategy of charging a high introductory price for a new product that invites eventual competition?
A) kiting
B) escalation
C) skimming
D) penetration

Question

Quizplus · Accepted Answer

Skimming is a pricing strategy that involves setting a high price for a new product during its introduction into the market. This is usually done to take advantage of early adopters who are willing to pay more for the latest product. Eventually, as competition enters the market, the company may reduce the price to remain competitive. Therefore, the high introductory price invites competition.

Which of the Following Is a Strategy of Charging a High