A new product ________ pricing strategy is often used in markets with little competition and when the company seeks to recover start-up costs quickly.
A)penetration
B)skimming
C)discount
D)sliding-down-the-demand-curve

Question

Quizplus · Accepted Answer

Skimming pricing strategy involves setting a high price for a new product before gradually lowering it over time. This strategy is often used when there is little competition and the company needs to quickly recoup start-up costs.

A New Product ________ Pricing Strategy Is Often Used in Markets