Question

A smartphone manufacturer introduced a new device into the marketplace with pricing set according to the skimming approach. The CEO of the company reviews financial reports from the device and notes that the pricing approach used is not cost-effective for the company. How should the CEO adjust the pricing strategy for this device? ​ Group of answer choices Drop the price Increase the price Offer an everyday low price option Remarket the device under a private label Match the price to the competitions' price

Answer 1

Drop the price

Step-by-step explanation:

Since in the given question it is mentioned that the new product is launched as per the skimming approach but the CEO of the company recognize that the pricing approach is not cost effective so here the CEO would adjust the pricing strategy by dropping the price so that the sales of the company could be rise due to which they are able to achieve the high profits.