Question

When burroughs-wellcome introduced the first anti-aids drugs, they initially set the price at $10,000 for a year's supply. burroughs-wellcome was probably pursuing a __________ pricing strategy?

Answer 1

A skimming pricing strategy was used by Burroughs-Wellcome when it introduced the first anti-aids drugs. This kind of pricing strategy uses a higher initial price set by the producer for their specific product at their first introduction on it, and slowly lowering the price as time passes by.