Asked by Dolly Rodriguez on Jul 03, 2024
Verified
LCG Inc.,a mobile manufacturing company,is launching its new product in the market.The managers at LCG want to price the product in a way that would enable the company to recover the investments made toward developing the product.Which pricing strategy would be most effective for LCG Inc.?
A) Price skimming
B) Price comparing
C) Odd pricing
D) Reference pricing
E) Price discounting
Price Skimming
A pricing strategy where a firm charges a high initial price for a product, then gradually lowers the price over time.
Product Development
The creation of new products or significant improvements on existing ones, from concept generation to market introduction.
- Familiarize oneself with the underpinnings of pricing strategy decisions for both newly launched and existing products, considering the dynamics of competition.
Verified Answer
SL
Shara Lyn SantiagoJul 05, 2024
Final Answer :
A
Explanation :
Price skimming is effective for recovering investments made in product development by setting high initial prices that are lowered over time. This strategy capitalizes on the willingness of early adopters to pay a premium for the new product.
Learning Objectives
- Familiarize oneself with the underpinnings of pricing strategy decisions for both newly launched and existing products, considering the dynamics of competition.