Which of the following strategies is involved with price skimming?
A) setting an initial low price to establish a new product in the market
B) setting an initial low price to cover new product costs and still generate a profit
C) setting a limited number of prices for certain categories or products
D) setting an initial high price to establish a new product in the market
E) setting an initial high price to cover new product costs and still generate a profit

Question

Quizplus · Accepted Answer

E)The revenue is often needed to cover development and production costs. Skimming works only if marketers can convince consumers that a new product is truly different from existing products.

Which of the Following Strategies Is Involved with Price Skimming