In some cases, penetration pricing may follow skimming pricing. The skimming pricing would help ________ and the penetration pricing would help
A) Increase market share; attract price-insensitive customers.
B) attract price-sensitive customers; increase market share.
C) Recoup initial research and development costs; increase market share.
D) recoup initial research and development costs;improve firm reputation.
E) increase market share; attract price-insensitive customers.

Question

Quizplus · Accepted Answer

Skimming pricing helps recoup initial research and development costs by charging higher prices initially, while penetration pricing helps increase market share by setting lower prices to attract a larger customer base.

In Some Cases, Penetration Pricing May Follow Skimming Pricing