Setting the Highest Initial Price That Customers Really Desiring the Product

question 73

Multiple Choice

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a

• A)skimming strategy.
• B)penetration strategy.
• C)price-lining strategy.
• D)experience-curve pricing strategy.
• E)prestige pricing strategy.

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Definitions:

Formalized Buying Center

A structured group within an organization responsible for making purchase decisions.

Purchase Decision

The final stage in the consumer decision-making process where the consumer chooses to buy a product or service after evaluating alternatives.

Bidder's List

A bidder's list is a compilation of suppliers or contractors who have expressed interest in submitting proposals or bids for a specific project or procurement, maintained by purchasing organizations for competitive bidding processes.

Buying Center

A group within an organization responsible for making purchasing decisions.