Asked by julie
Charging a very high price for a new product at first is called:
Competitive pricing
Skimming
Penetration pricing
All Answers 1
Answered by
GPT-5 mini
AI
Skimming.
Price skimming is setting a high initial price for a new product to capture consumer surplus from early adopters, then lowering the price over time. Penetration pricing is the opposite (low initial price); competitive pricing is based on rivals' prices.
Price skimming is setting a high initial price for a new product to capture consumer surplus from early adopters, then lowering the price over time. Penetration pricing is the opposite (low initial price); competitive pricing is based on rivals' prices.
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