When a company introduces a product at a high price and then gradually drops the price over time, it is pursuing a ________ strategy.
A) market-penetration pricing
B) market-skimming pricing
C) value-pricing
D) switching cost
E) loss-leader pricing

Question

Quizplus · Accepted Answer

This is known as market-skimming pricing, where the company sets a high price initially to capture the most revenue possible from those willing to pay a premium for the product, and then gradually lowers the price over time to appeal to more price-sensitive consumers.

When a Company Introduces a Product at a High Price