If a producer's marketing manager doesn't know the shape of the demand curve for a new product, the initial price level policy should probably be a ______________ policy.
A) flexible-pricing
B) target-return pricing
C) introductory pricing
D) penetration price
E) skimming price

Question

Quizplus · Accepted Answer

Skimming price is a pricing strategy that sets a high initial price for a new product in order to maximize revenue from early adopters who are willing to pay a premium for the product. This strategy is appropriate when the demand curve for the product is unknown, as it allows the producer to test the market and determine the maximum price that consumers are willing to pay.

If a Producer's Marketing Manager Doesn't Know the Shape of the Demand