Carlton has developed a new cell phone that projects onto a surface instead of having a screen;this permits the user to attach it to a stand or lean it on one surface and use the surface it projects onto for the screen.By eliminating the screen,it can be made watch-size and worn on the wrist,as a pendant on a necklace,attached to a set of keys,or carried comfortably in one's pocket.Because he is certain the demand for the product will be high,he is setting the highest possible price for the new product.What pricing strategy is he using?
A) Price skimming
B) Penetration pricing
C) Differential pricing
D) Negotiated pricing

Question

Quizplus · Accepted Answer

Carlton is using price skimming, which involves setting the highest possible price for a new and innovative product, with the expectation that early adopters and those willing to pay a premium price will purchase the product. This pricing strategy is commonly used for products with high demand and limited competition.

Carlton Has Developed a New Cell Phone That Projects onto a Surface