Question

If your company introduces a product at a temporary high price and intends to lower the price later, what type of pricing strategy are you using?

Question 15 options:

unit pricing


penetration pricing


promotional pricing


price skimming

Answer 1

The pricing strategy you are describing is **price skimming**. This strategy involves setting a high initial price for a new product to maximize profits from early adopters, and then gradually lowering the price over time to attract a wider customer base.