Which of the following pricing strategies would be most commonly used for new products?
A) price skimming
B) special event pricing
C) price lining
D) everyday low prices

Question

Quizplus · Accepted Answer

Price skimming is commonly used for new products as it involves setting a high price initially to maximize profits from early adopters before gradually lowering the price to attract more price-sensitive customers. This strategy allows the company to recoup development and launch costs quickly and also creates a perception of high quality and exclusivity for the product.

Which of the Following Pricing Strategies Would Be Most Commonly