A ________ pricing strategy often is used when a company introduces a new product into a market with little or no competition.
A)price war
B)competitive
C)skimming
D)price floor

Question

Quizplus · Accepted Answer

Skimming pricing strategy involves setting a high price for a new product in order to obtain maximum revenue from consumers who are willing to pay a premium for the novelty or uniqueness of the product. This strategy is often used when there is little or no competition in the market, and the company wants to extract maximum value from early adopters before lowering the price to attract more price sensitive customers.

A ________ Pricing Strategy Often Is Used When a Company