Question

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

Question 6 options:

price skimming


promotional pricing


unit pricing


penetration pricing

Answer 1

You are using a **price skimming** strategy. This approach involves setting a high initial price for a new or innovative product to maximize profits from early adopters before gradually lowering the price to attract a broader customer base.