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An organization is competing in the high technology market. It sets a high sales price for its products initially to target the early adopters, and then the price is gradually reduced.
This pricing strategy is known as:
Suggested Answer: C, D
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40 comments · newest first
GL
Glenna
11 months ago
Premium pricing sounds like a good fit too, but skimming makes more sense here.
ET
Ettie
11 months ago
Really? I’m not sure that strategy always works.
RA
Raymon
11 months ago
Totally agree, skimming is the way to go for new tech!
GE
German
12 months ago
I thought it was penetration pricing at first.
YA
Yaeko
12 months ago
That's definitely market skimming!
RU
Ruth
1 year ago
Premium pricing sounds familiar too, but I don't think it involves gradually reducing prices like market skimming does.
AI
Aimee
1 year ago
I recall practicing a question similar to this, and I think market skimming was the answer. It makes sense for high-tech products.
JU
Justa
1 year ago
I'm not entirely sure, but I feel like penetration pricing is more about setting a low price to attract a large customer base quickly.
VO
Von
1 year ago
I think this is about market skimming, right? I remember it being used for new tech products to maximize profits from early adopters.
JE
Jenifer
1 year ago
Hmm, I'm a little confused. The question doesn't explicitly state the goal of the pricing strategy, so I'm not sure if it's market skimming or penetration pricing. I'll have to think about the nuances of each strategy to decide.
CH
Chantell
1 year ago
I'm leaning towards market skimming as well. The high initial price and gradual reduction fits that strategy, and it makes sense for a high-tech product targeting early adopters. I feel pretty confident about this one.
LO
Lorrie
1 year ago
Hmm, I'm a bit unsure about this one. The question mentions the price is gradually reduced, but it doesn't specify if the goal is to target early adopters or to undercut competitors. Could it also be considered penetration pricing?
ZI
Zita
1 year ago
I'm pretty sure this is market skimming. The question describes a strategy of starting with a high price and gradually lowering it, which aligns with the definition of market skimming.
SE
Serina
1 year ago
Okay, let me think this through. The key details are that the organization is competing in the high tech market and is using a pricing strategy to target early adopters. Based on that, I'd say the correct answer is market skimming.
KR
Kristine
1 year ago
I bet the test writers are just sitting back and laughing as they watch us all debate this. 'Gradually reduced' - it's so obvious, guys!
AL
Albina
1 year ago
Penetration pricing, eh? Nah, that's more about setting a low price to gain market share. This is all about that sweet, sweet market skimming. A all the way!
ST
Stevie
1 year ago
I agree, market skimming is the way to go. A is the correct choice.
ER
Ernest
1 year ago
Yeah, market skimming is definitely the strategy here. A for sure.
KI
Kimberely
1 year ago
I think it's market skimming too. A is the right answer.
DI
Dick
2 years ago
Loss leader pricing? Really? This is clearly not a loss leader situation. Come on, people, pay attention to the details!
FI
Fidelia
1 year ago
C) Premium pricing
CU
Curtis
1 year ago
D) Loss leader pricing
NA
Natalie
1 year ago
C) Premium pricing
TA
Tandra
1 year ago
B) Penetration pricing
DO
Dorothea
1 year ago
B) Penetration pricing
TY
Ty
1 year ago
A) Market skimming
QU
Quentin
1 year ago
A) Market skimming
MY
My
2 years ago
I agree with Corinne, penetration pricing makes more sense in this scenario.
JE
Jesusita
2 years ago
Hmm, I was torn between market skimming and premium pricing, but the 'gradually reduced' part gives it away. Gotta go with A on this one.
CO
Corinne
2 years ago
I disagree, I believe the correct answer is B) Penetration pricing.
CA
Catarina
2 years ago
This one's a no-brainer! The pricing strategy described is definitely market skimming. High price to target early adopters, then gradually lower it - classic!
SH
Shizue
1 year ago
Definitely not loss leader pricing.
ZA
Zana
1 year ago
D) Loss leader pricing
AL
Alison
1 year ago
Not premium pricing either.
SA
Salley
1 year ago
C) Premium pricing
DO
Dominga
1 year ago
No, it's not penetration pricing.
VE
Veda
1 year ago
B) Penetration pricing
TO
Tony
1 year ago
Definitely market skimming.
KA
Katie
2 years ago
A) Market skimming
RA
Rasheeda
2 years ago
I think the answer is A) Market skimming.