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Question
Which pricing strategy will be used to launch a high end auto motors?
Options
Parity Pricing
Skimming Pricing
Cost Plus Pricing
Penetrating Pricing
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Solution
Skimming Pricing
Explanation:
Skimming pricing is a strategy where a high initial price is set for a new, high-end product to maximize profits from customers willing to pay a premium. This approach is often used for luxury or high-tech products, such as high-end auto motors, to recover development costs quickly and create a perception of exclusivity and superior quality.
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