Question

The strategy of introducing a product with high introductory price is called _______.

• A. penetration strategy
• B. skimming strategy
• C. pull strategy
• D. push strategy

Answer 1

Answer: (B)

skimming strategy

Skimming strategy is a pricing strategy. It is a strategy where the marketer sets a relatively high initial price of a product or services and then lower the prices over time. This pricing strategy is undertaken to target the niche market and to capture the consumer surplus early in the product life cycle in order to exploit a monopolistic position.