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The most popular pricing strategy at the introduction stage of a products life-cycle is:

  • A.Loss leader pricing
  • B.Price skimming
  • C.Perceived value pricing
  • D.Value pricing

Answer: B

Price skimming means setting a high price when a new product is introduced, to earn high margins from buyers who are keen to have it, and lowering the price later as the market widens. It is the most common strategy at the introduction stage of the product life cycle. Loss leader pricing sells some goods below cost to attract customers, perceived value pricing is based on the buyer's view of worth, and value pricing offers good quality at low prices, and none is specific to the introduction stage. The key gives price skimming, option B.

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