When a company introduces a product at a very 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 the definition of market-skimming pricing. The company sets a high price initially to capture the most that it can from the market before competition sets in, and then gradually lowers the price as time goes on to attract more price-sensitive consumers.

When a Company Introduces a Product at a Very High