When introducing a new or innovative product, setting the highest initial price that customers really desiring the product are willing to pay is referred to as a
A)skimming strategy.
B)penetration strategy.
C)price-linking strategy.
D)experience-curve pricing strategy.
E)prestige pricing strategy.

Question

Quizplus · Accepted Answer

Setting a high initial price for a new or innovative product is known as skimming strategy. This strategy is used to maximize profits by targeting the early adopters who are willing to pay a premium price for the product before competitors enter the market or before the product becomes more widely available.

When Introducing a New or Innovative Product, Setting the Highest