Multiple choice

The strategy of introducing a product with high introductory price is called

  1. penetration strategy

  2. skimming strategy

  3. pull strategy

  4. push strategy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Price skimming is a strategy where a product is introduced at a high initial price to 'skim' maximum revenue from market segments willing to pay more, then gradually lowering the price to capture more price-sensitive segments. This is opposite to penetration pricing (low initial price to gain market share). Pull and push strategies relate to promotional methods, not pricing.

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