Setting the Highest Initial Price That Customers Who Really Desire

question 135

Multiple Choice

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

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

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Definitions:

Theory

A systematic set of ideas and principles designed to explain certain phenomena or patterns, often forming the basis for further exploration and testing.

Prosumer Capitalism

An economic system where consumers are also involved in the production process, often enabled by digital technology and altering traditional consumer-producer roles.

George Ritzer

An American sociologist recognized for his work on consumerism, globalization, and the theory of McDonaldization of society.

Double Exploitative

A term describing situations or systems where individuals or groups are subjected to two overlapping forms of exploitation, often related to labor and resources.