Question

Hallmark was the official supplier of flowers at the last Winter Olympics. It was the first time that it has participated in the Olympics. Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch. Consumers can buy a smaller version of this same bouquet at the Hallmark website for $74.95. The Olympic bouquet that consumers can buy contains two dozen yellow roses, yet you can buy two dozen yellow roses for less than $35 at most supermarkets. If Hallmark is treating the Olympic bouquet as an innovative product, then it is using which demand-oriented approach to pricing?

Answer 1

skimming pricing

Step-by-step explanation:

Based on the description provided regarding the scenario it can be said that Hallmark is using a skimming pricing approach. This is a pricing strategy in which the company sets a relatively high initial price for their product/service and goes lowering that price over time. That is what Hallmark is doing by treating their Olympic bouquet as an innovative product and pricing it at a high price initially, they will begin to lower this price as the Winter Olympics come to a close and less people are thinking about it.