Asked by jayla houser on Apr 26, 2024
Verified
With an inelastic product, since there are not usually many substitutes, a/an ______ strategy can be used, setting the prices higher.
A) skimming
B) penetration
C) odd
D) reference
Inelastic Product
A product or service whose demand does not significantly change with variations in its price.
Substitutes
Products or services that can be used in place of another to satisfy consumer needs or desires.
Skimming Strategy
A pricing approach where a high price is set for a new product to maximize profits from customers willing to pay high prices before lowering the price over time.
- Review different strategies for pricing and how they are applied.
Verified Answer
KN
karthika naiduApr 26, 2024
Final Answer :
A
Explanation :
Skimming strategy involves setting high prices initially for a product with inelastic demand, capitalizing on the lack of substitutes and the willingness of consumers to pay more.
Learning Objectives
- Review different strategies for pricing and how they are applied.