High School

______ involves charging a high price for a product in order to provoke the perception of high quality.

A) Penetration pricing
B) Skimming pricing
C) Cost-plus pricing
D) Competitive pricing

Answer :

Final answer:

Skimming pricing involves charging a high price for a product to create the perception of high quality. The correct answer is B) Skimming pricing.

Explanation:

Charging a high price for a product to create the impression that it is of superior quality is known as "skimming pricing." This strategy is often used when a new product is introduced to the market and targets a smaller segment of customers who are willing to pay a premium price.

An example of skimming pricing can be seen in the tech industry, where companies release new smartphones at a high initial price to attract early adopters and then gradually reduce the price over time to reach a wider customer base.