Question

what pricing strategy is used when a new product is introduced to the marketplace with a high price to emphasize its quality and uniqueness?
a penetration pricing
b price lining
c price skimming
d psychological pricing
ack

Explanation:

To determine the correct pricing strategy, we analyze each option:

• Option A (penetration pricing): Involves setting a low initial price to gain market share, which does not match the "high price" description.
• Option B (price lining): Refers to offering products at different price points (e.g., budget, mid - range, premium) within a product line, not related to emphasizing quality/uniqueness with a high initial price for a new product.
• Option C (price skimming): Is a strategy where a new product is launched with a high price to target early adopters and emphasize its quality, uniqueness, or exclusivity. This matches the description in the question.
• Option D (psychological pricing): Uses pricing tactics (like odd - even pricing) to influence consumer perception, not about setting a high price for a new product to highlight quality/uniqueness.

Answer:

C. price skimming