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<p><strong>(a) Setting an initially – high price which falls as competitors enter the market.</strong></p> <p><strong>(b) Setting a high price which consumers perceive as indicating high quality.</strong></p> <p><strong>(c) Setting a low price to “Skim off” a large number of consumers.</strong></p>
A) Setting an initially – high price which falls as competitors enter the market.
Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers are satisfied, the firm lowers the price to attract another, more price-sensitive segment.
(a) Setting an initially – high price which falls as competitors enter the market.
A
(a) Setting an initially – high price which falls as competitors enter the market.
Price skimming strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.
This scenario is best undertaken by 'Technology' related companies, whenever they bring certain trend, they usually keep 'High price' whe new competitor's starts emerging than the prices are shredded. Example: Apple, Google Specs etc
Its Absolutely "A".
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