Asked by
Savannah Mallach
on Nov 06, 2024
Verified
Mocha Café initially charged a low price for its cuisine and then raised the price after gaining a large market share.Which of the following pricing strategies did Mocha Café use in this scenario?
A) Prestige pricing
B) Penetration pricing
C) Odd pricing
D) Price skimming
E) Even pricing
Price Skimming
A pricing strategy involving setting an initially high price before gradually lowering it over time as the product's novelty wears off.
- Acquire knowledge about price-setting techniques and their effects on the mental processes of buyers.
- Acquire an understanding of the basis for setting prices for new and existing products, in light of competitive reactions.
Verified Answer
GS
Learning Objectives
- Acquire knowledge about price-setting techniques and their effects on the mental processes of buyers.
- Acquire an understanding of the basis for setting prices for new and existing products, in light of competitive reactions.