The pricing strategy for new product through which revenues are collected from segments willing to pay higher prices is classified as?
Correct answer: A. market skimming pricing
- A. market skimming pricing
- B. market penetration strategy
- C. business line pricing
- D. product line pricing
Explanation
Market-skimming pricing starts a new product at a high price to capture revenue from customers willing to pay more, then may lower the price later. Market penetration pricing does the opposite by beginning with a low price to build market share quickly.
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