Question

You would most likely use a skimming strategy when introducing a new product into the market. Which of the following indicators was present?

a) High initial price
b) Limited product features
c) Widespread distribution
d) Frequent promotional offers

Answer 1

a) High initial price indicators was present.

Step-by-step explanation:

a) High initial price indicators was present.

A skimming strategy involves setting a high initial price for a new product when introducing it to the market. This approach is often used when a company believes that there is a segment of the market willing to pay a premium for the innovative or unique features of the product. The high initial price is intended to "skim" the market for the most willing and able customers who value the new product the most.

The other options are not characteristic of a skimming strategy:

- Limited product features may be associated with a penetration strategy, where the initial price is set low to gain a large market share.

- Widespread distribution is more aligned with a penetration strategy, aiming to quickly reach a broad customer base.

- Frequent promotional offers are not typical of a skimming strategy, as this strategy relies on the premium value of the product rather than discounts or promotions.