Question

samsung is developing a new tablet computer that it believes will revolutionize mobile computing. since the company believes there is little direct competition for this new product, they plan to set a high price in comparison to other computer models. samsung is using a ______ pricing strategy.
skimming
competitive
penetration
market - minus.

Explanation:

• Skimming pricing strategy: Involves setting a high initial price for a new product to target early adopters and maximize revenue before competitors enter or prices are lowered. Samsung's new tablet with little direct competition fits this as they set a high price.
• Competitive pricing strategy: Sets prices based on competitors' prices. But here, Samsung is setting a high price despite little competition, not basing on competitors.
• Penetration pricing strategy: Sets a low initial price to gain market share quickly. Opposite of Samsung's high - price move.
• Market - minus pricing strategy: Sets price below the market average. Again, not in line with Samsung's high - price approach.

Answer:

skimming