Question

Daryl has just patented a new technological medical device designed to help individuals with disabilities navigate their homes safely. Currently, his is one of a very few companies operating in this industry. Which price strategy should Daryl use?
a. both price skimming and penetration pricing
b. status quo pricing
c. penetration pricing
d. price skimming

Answer 1

Answer:

The correct answer is the option D: Price skimming.

Explanation:

To begin with, the concept known as "Price skimming" in the field of business management and marketing refers particulary to the price strategy that the companies use with the major focus of caputuring the most possible of the economic surplus of the consumer in the early stages of purchase when the product is completely new in the market. Once it has sold out as many as possible regarding the clients that are willing to pay that elevated price, then the organization decrease the price with the focus of engaging other clients as well. So therefore that this is the best strategy that Daryl could use with his product.