Asked by Aaliya Smith on Jul 03, 2024
Verified
Lindsay believes that her customers prefer to wait until the price of a product has gone down before buying it and are not worried about being the first to have a new product or innovation. It would benefit Lindsay to use the price skimming strategy.
Price Skimming Strategy
A price skimming strategy involves setting high prices initially and then gradually lowering them to attract more price-sensitive customers.
Product Innovation
The development of new or significantly improved goods or services that deliver value to customers and differentiate a company from its competitors.
- Acquire insight into the function of pricing as part of the marketing mix, along with its association with perceived value, cost, and the purchasing patterns of customers.
Verified Answer
ZK
Zybrea KnightJul 09, 2024
Final Answer :
False
Explanation :
The price skimming strategy involves setting a high price for a new product or innovation to attract early adopters who are willing to pay a premium price. This strategy is suitable for products with high demand, limited competition, and a high level of innovation. Since Lindsay's customers prefer to wait until the price goes down, using a price skimming strategy would not be beneficial for her business.
Learning Objectives
- Acquire insight into the function of pricing as part of the marketing mix, along with its association with perceived value, cost, and the purchasing patterns of customers.
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