Question

If Sports Shoes & Apparel R Us, a sports products manufacturer, introduces a new line of sports shoes and prices them at a high price in order make as much profits as possible from consumers who are not price sensitive, this would be a reflection of this pricing tactic.

a. Differential pricing
b. Break-even pricing
c. Skimming pricing
d. Penetration pricing
e. Promotional pricing

Answer 1

Skimming pricing is the pricing tactic represented in the question, where a manufacturer sets a high price for a new product to maximize profits from consumers who are not price sensitive.

Step-by-step explanation:

The pricing tactic described in the question, where a manufacturer introduces a new line of sports shoes and prices them high in order to target consumers who are not price sensitive, is an example of skimming pricing. Skimming pricing is when a company sets a high initial price for a new product to maximize profits from the segment of the market willing to pay a premium price.