Commerce JAMB

The pricing policy that seeks to set prices relatively high in order to attract the wealthy segment of the market is?

A. target return pricing
B. market skimming
C. variable pricing
D. market penetration

Correct Answer:

Option B – market skimming

Explanation

Market Skimming Pricing. a pricing approach in which the producer sets a high introductory price to attract buyers with a strong desire for the product and the resources to buy it, and then gradually reduces the price to attract the next and subsequent layers of the market.

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