Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.

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Newport Industries is actually using a penetration pricing strategy designed to attract more customers and discourage competition. Price skimming refers to a strategy in which a firm offering a new product initially charges a high price while there is little competition.

Newport Industries Is One of the First Producers of a Unique