A _____ pricing strategy permits marketers to control demand in the introductory stages of a product's life cycle and then adjust productive capacity to match changing demand.
A) penetration
B) value-added
C) skimming
D) competitive

Question

Quizplus · Accepted Answer

The skimming pricing strategy involves initially setting high prices for a new product to help recoup development costs and establish the product as a premium offering. This strategy is effective in controlling demand in the introductory stages of a product's life cycle, as it attracts early adopters who are willing to pay a premium price for the product. As demand levels off, the marketer can adjust the price downward to appeal to a broader market. Therefore, this pricing strategy allows marketers to adjust productive capacity to match changing demand.

A _____ Pricing Strategy Permits Marketers to Control Demand in the Introductory