PRC-3 · Chapter 7 · Question 24 of 72
Which pricing strategy involves setting an initially high price to maximize profits before competitors enter the market, and then gradually lowering it?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Price skimming
Explanation
Price skimming is charging a high initial price to early adopters to maximize short-term profit before competition forces the price down.
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