Asked by Aaliya Smith on Jul 03, 2024

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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.
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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.