Rolex takes pride in emphasizing that it makes one of the most expensive watches you can buy, which is an example of Blank______.

Multiple choice question.

above-market pricing

target profit pricing

target return pricing

skimming pricing

1 answer

The correct answer is skimming pricing.

Skimming pricing is a strategy where a company sets a high price for a new product to maximize profits from customers willing to pay a premium before gradually lowering the price over time. Rolex's emphasis on producing high-end, expensive watches aligns with this pricing strategy.