Setting the highest initial price that customers really desiring the product are willing to pay is:
A)skimming pricing.
B)penetration pricing.
C)price lining.
D)odd-even pricing.

Question

Quizplus · Accepted Answer

Skimming pricing involves setting a high initial price for a new product that appeals to the customers who are willing to pay a premium to have it first. This pricing strategy is often used for innovative products with a unique value proposition and high demand. The goal is to maximize profits in the short-term before competitors enter the market and emulate the product.

Setting the Highest Initial Price That Customers Really Desiring the Product