Question

Skim pricing (otherwise known as Price Skimming) is usually used for products that are being newly introduced to a market (such as a new golf club being introduced to the golf club market).

a) True
b) False

Answer 1

Skim pricing, also known as Price Skimming, is a pricing strategy commonly used for new products that are introduced to the market. This strategy involves setting high initial prices for the product to target early adopters or customers with higher willingness to pay.

Step-by-step explanation:

False. Skim pricing, also known as Price Skimming, is a pricing strategy commonly used for new products that are introduced to the market. This strategy involves setting high initial prices for the product to target early adopters or customers with higher willingness to pay. Over time, the price is gradually lowered to attract more price-sensitive customers.