The pricing strategy practiced by company according to which prices are high for products at introduction stage and drops overtime is classified as _________?
Correct answer: C. market skimming pricing
- A. push pricing strategy
- B. market penetration pricing
- C. market skimming pricing
- D. quality leadership pricingManufacturing
Explanation
Market skimming sets a high introductory price to capture buyers willing to pay more, then lowers the price as competition increases or the product reaches wider markets. Penetration pricing follows the opposite pattern by starting low.
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