A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.
A)price skimming
B)trial pricing
C)value pricing
D)market-penetration pricing
E)predatory pricing

Question

Quizplus · Accepted Answer

This pricing strategy is called price skimming, where a company sets a high price initially to target early adopters or those willing to pay a premium price for a new product. The company then gradually lowers the price to attract more price-sensitive customers.

A Firm Is Using ________ When It Charges a High,premium