The pricing policy that allows a company to generate much-needed revenue to help offset the costs of research and development is known as:
A)penetration pricing.
B)price discounting.
C)psychological pricing.
D)price skimming.
E)emotional pricing.

Question

Quizplus · Accepted Answer

Price skimming is a strategy where a company charges the highest initial price that customers will pay for a new or innovative product, then lowers the price over time. This approach helps recover the costs of research and development quickly, as the initial high price targets those customers willing to pay more for the novelty or unique features of the product.

The Pricing Policy That Allows a Company to Generate Much-Needed