the pricing strategy where a low initial price is set for a product and then is raised over time is called ___ price strategy

Question

a penetration, an economy
a skimming, a premium

Answer 1

The pricing strategy where a low initial price is set for a product and then raised over time is called a skimming price strategy. However, it's worth noting that the term more commonly associated with starting low and then raising prices is "penetration pricing."

To clarify:

• Penetration pricing: Setting a low initial price to attract customers and gain market share, with the intention of raising the price later.
• Skimming pricing: Setting a high initial price and then lowering it over time.

In your question, it seems there might be some confusion, as "skimming" typically refers to starting high and dropping prices.