A _____ pricing strategy permits marketers to control demand in the introductory stages of a product's life cycle and then adjust productive capacity to match changing demand.
A)penetration
B)value-added
C)skimming
D)competitive

Question

Quizplus · Accepted Answer

Skimming pricing strategy involves setting a high price for a product in the initial stages of its release to "skim" maximum revenue from the market. This strategy works well with products that have a unique selling proposition, and consumers are willing to pay a premium price for them. As the demand stabilizes, the company may lower the price of the product. Skimming pricing strategy allows marketers to control demand in the introductory stages and adjust production capacity to match changing demand.

A _____ Pricing Strategy Permits Marketers to Control Demand in the Introductory