when microwave ovens were in the introduction stage of their product life cycle, some consumers were willing to pay exorbitant p
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When microwave ovens were in the introduction stage of its product life cycle, some consumers were willing to pay exorbitant prices for these innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price, and customers with a very strong desire for the product were willing to pay. Marketers of microwave ovens used a <u>a. skimming</u> pricing strategy.
<h3>What does a skimming pricing strategy consist of?</h3>Skimming is a pricing strategy that establishes a high initial price in the launch of a new product. The purpose is to increase the perception of the brand, create a competitive advantage, and generate sales revenue that allows for covering the initial expenses more quickly. The price decrease when the product enters the maturity and decline phase.
This strategy is used in the technology and innovation sectors because consumers are more interested in investing in the latest technology products.
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