Multiple choice

Skimming price relates to

  1. charging competitive price

  2. charging high initial price

  3. charging low initial price

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Skimming pricing is a strategy where a company charges a high initial price for a new product when it's first introduced to the market. This helps recover development costs quickly and target early adopters who are less price-sensitive. The price is often lowered later as competition enters the market.

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