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A firm launches a new, technologically advanced gadget at a very high price and then lowers the price gradually over time. This pricing str…

2558Medium DSSSB TGT Computer Science 0 replies 1 views

A firm launches a new, technologically advanced gadget at a very high price and then lowers the price gradually over time. This pricing strategy is called

Apenetration pricing
Bprice skimming
Ccost-plus pricing
Dloss-leader pricing

Correct answer: B

Explanation

In price skimming the firm first "skims" the market segment that is willing to pay a high price and reduces the price later to reach more customers, unlike penetration pricing which starts low.

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