Asked by giannah alessandra on Jun 13, 2024
Verified
Setting the price of a new product higher than expected in order to recover development costs is known as ______.
A) penetration pricing
B) price skimming
C) psychological pricing
D) price lining
Price Skimming
Setting the price of a new product higher than expected to recover development costs.
Penetration Pricing
Setting the price of a new product lower than expected to gain fast market share.
Development Costs
Development costs are expenses associated with the creation and design of new products or services, including research and development.
- Evaluate a range of pricing techniques and their usage in real-world scenarios.
Verified Answer
TH
Trinity HerrinJun 15, 2024
Final Answer :
B
Explanation :
Price skimming is a pricing strategy where a firm charges a high initial price for a product, gradually lowering the price over time. This approach is often used to recover the development costs quickly.
Learning Objectives
- Evaluate a range of pricing techniques and their usage in real-world scenarios.