Price skimming and penetration pricing are both strategies used for
A) product-line pricing.
B) business products only.
C) psychological pricing.
D) new-product pricing.
E) promotional pricing.

Question

Quizplus · Accepted Answer

Both price skimming and penetration pricing are strategies used for new-product pricing. Price skimming involves setting a high price initially and then gradually lowering it as competitors enter the market, while penetration pricing involves setting a low price initially to quickly gain market share.

Price Skimming and Penetration Pricing Are Both Strategies Used for