A firm has introduced a new microwave oven that also serves as a convection oven. The oven has been acclaimed by food critics, has received much publicity, and has no direct competition. What is the most appropriate pricing strategy for the firm?
A) Penetration
B) Skimming
C) One-price policy
D) Price lining

Question

Quizplus · Accepted Answer

Skimming is the most appropriate pricing strategy in this scenario because the product is unique, has high demand, and lacks direct competition, allowing the firm to set higher initial prices to maximize profits before any potential competitors enter the market.

A Firm Has Introduced a New Microwave Oven That Also