Question

During the introduction stage of the product life cycle, ________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development.

Answer 1

Answer:

skimming pricing strategy

Explanation:

Skimming pricing strategy -

It is a the pricing strategy , where the company or any business keeps the price of any product high , and with time reduces the price of the product , is referred to as skimming pricing strategy .

In the initial stage as the product is launched in the market , the demand for the product is higher , and therefore , the company ask for higher price ,

But ,

As the time passes , the demand for the product reduces , and hence to maintain the profit margin , the company reduces the price of the product .

Hence , from the given information of the question ,

The correct answer is skimming pricing strategy .