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When Prestige Appliances Inc. releases new appliances, it often uses price skimming and sets the initial price at the highest possible price that buyers are willing to pay. What is a reason Prestige Appliances Inc. would choose price skimming instead of penetration pricing?

Respuesta :

Answer:

skimming is more flexible than penetration

Explanation:

  • When Prestige uses price skimming with highest initial possible price because price skimming is more flexible than penetration pricing
  • As Penetrating pricing and price skimming are the marketing strategies that companies typically employ when launching new products or services. Both approaches work for businesses.
  • Penetration pricing relies on lower upfront prices to attract customers, while skimming is the use of higher upfront prices to maximize short-term profits from most avid and willing customers.

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