When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market.This high introductory pricing is an example of:
A)price skimming
B)penetration pricing
C)market share pricing
D)limited value pricing
E)low-ball pricing

Question

Quizplus · Accepted Answer

Price skimming involves setting a high price when a product is introduced to the market to maximize profits from segments willing to pay the high price, before adjusting the price to attract more price-sensitive customers. Top-Flite's strategy of charging three times the price of current golf balls fits this description.

When Top-Flite Introduced Its Strata Golf Balls with a New