Question

If your company introduces a product at a temporary high price and intends to lower the price later, you are using what type of pricing strategy? A. Penetration pricing B. Promotional pricing C. Price skimming D. Unit pricing

Answer 1

C. Price skimming


Price skimming is a pricing strategy in which a marketer sets a relatively high initialprice for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.