Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market- penetration pricing and .
A)market- price filling
B)market- skimming pricing
C)market- price lining
D)market- level pricing
E)market- competitive pricing

Question

Quizplus · Accepted Answer

Market-skimming pricing involves setting high prices for new and innovative products or services to maximize revenue in the short term before competitors enter the market. This strategy is suitable if the company has a significant competitive advantage, and demand for the product is relatively inelastic. Thus, it is the best choice for companies facing the challenge of setting prices for the first time. On the other hand, market-penetration pricing involves setting low prices to attract customers and gain market share quickly, which may not be suitable for a company's first pricing strategy.

Companies Facing the Challenge of Setting Prices for the First