Question

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy.A) gray marketB) skimmingC) penetrationD) market holdingE) cost-based

Answer 1

Answer:

B. skimming pricing strategy

Explanation:

Skimming pricing strategy -

It refers to the strategy of reducing the price of the goods and services over the period of time , is referred to as skimming pricing strategy .

In the initial time of the product launch , the demand of the product is very high and hence the price is also high .

But as the time passes by , the demand for the product reduces , and hence the price also reduces .

Hence , from the given scenario of the question ,

The correct option is B. skimming pricing strategy .