When Introducing a New or Innovative Product, Setting the Highest

question 367

Multiple Choice

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

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

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Definitions:

Mild Initiation

A procedure in which an individual undergoes a relatively easy or minor ordeal before gaining access to a new group or taking part in an activity, potentially affecting the value placed on the membership or activity.

Boring Discussion

An uninteresting or tedious conversation that fails to capture the attention or engagement of the participants.

Self-Verification

A theory suggesting individuals seek to confirm their self-concept by encouraging others to see them as they see themselves.

Self-Affirmation

A cognitive process that involves affirming one's values, strengths, or qualities to maintain self-integrity and deal with threats.