The correct answer is "a price skimming strategy".

Here's why:

Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. This is a common strategy used by companies for new technology products or during the introductory phase of a product. The goal is to "skim" off the top layer of customers who are willing to pay more to have the product sooner.

Psychological pricing refers to the technique of setting prices at a certain level where the consumer perceives the price to be lower than it actually is.

Price discounting is a pricing strategy where items are initially marked up artificially or start at a higher cost, then are marked down, to seem like a good deal to customers.

A penetration strategy is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth.

So, in the context of the question, the strategy that involves pricing a new product very high to make optimum profit while there is little competition is known as a price skimming strategy.

Question

The correct answer is "a price skimming strategy".

Here's why:

Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. This is a common strategy used by companies for new technology products or during the introductory phase of a product. The goal is to "skim" off the top layer of customers who are willing to pay more to have the product sooner.

Psychological pricing refers to the technique of setting prices at a certain level where the consumer perceives the price to be lower than it actually is.

Price discounting is a pricing strategy where items are initially marked up artificially or start at a higher cost, then are marked down, to seem like a good deal to customers.

A penetration strategy is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth.

So, in the context of the question, the strategy that involves pricing a new product very high to make optimum profit while there is little competition is known as a price skimming strategy.

Knowee AI · Accepted Answer

The correct answer is "a price skimming strategy".

Here's why:

Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. This is a common strategy used by companies for new technology products or during the introductory phase of a product. The goal is to "skim" off the top layer of customers who are willing to pay more to have the product sooner.

Psychological pricing refers to the technique of setting prices at a certain level where the consumer perceives the price to be lower than it actually is.

Price discounting is a pricing strategy where items are initially marked up artificially or start at a higher cost, then are marked down, to seem like a good deal to customers.

A penetration strategy is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth.

So, in the context of the question, the strategy that involves pricing a new product very high to make optimum profit while there is little competition is known as a price skimming strategy.

Multiple Choice QuestionWhen a firm prices a new product very high to make optimum profit while there is little competition, it is said to be using ______.Multiple choice question.psychological pricingprice discountinga penetration strategya price skimming strategy

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