The Policy of Using a Skimming Pricing Approach When a Product

question 72

Multiple Choice

The policy of using a skimming pricing approach when a product is introduced, followed by penetration pricing as the product matures, is referred to by Joel Dean as:

• A)product differentiation.
• B)market segmentation.
• C)time segmentation.
• D)price administration.
• E)life cycle pricing.

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Definitions:

Premium

An amount paid in addition to the standard or nominal amount, often for insurance, superior products, or securities above their face value.

Spot Rate

The current market price at which a particular asset, such as foreign currency, can be bought or sold for immediate delivery.

Direct Quote

A currency exchange rate expressed in terms of the home currency per unit of the abroad currency.

Euros

The official currency used by the countries of the Eurozone.