Herald Inc.is a leading producer of software technology and cloud computing devices.In an attempt to further its goal of innovation,Herald introduces a technologically advanced one-of-a-kind user interface at a relatively high price.By doing so,Herald seeks temporary monopoly until competitors move in.This is a typical example of a(n)_____.
A)penetration policy
B)odd-even policy
C)skimming policy
D)going-rate policy

Question

Quizplus · Accepted Answer

The scenario describes Herald Inc. introducing a new and technologically advanced product at a high price. This is consistent with a skimming pricing policy, where companies launch their products at high prices to target early adopters who are willing to pay a premium for the latest technology. The company may then lower prices over time as competition enters the market, and the product becomes more widely adopted. A skimming policy allows a company to capture a significant share of the market and generate high profits in the short term.