The new product pricing strategy through which company makes more profitable sales by selling out fewer units is classified as?
Correct answer: B. price skimming
- A. optional product pricing
- B. price skimming
- C. price penetration
- D. product line pricing
Explanation
Price skimming sets a high initial price to earn greater profit per unit from buyers willing to pay more, often resulting in fewer units sold initially. Price penetration uses a low initial price to attract many buyers and build market share quickly.
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