Question

Gourmet pets feels its target market is more concerned with perceived quality than actual product cost. They also feel that the newness of this concept offers an opportunity to make high profits since they are first firm to enter this market, so they face no direct competition. their decision to charge a high price is consistent with the _____ strategy. A. price leadership
B. skimming price
C. penetration price
D. market pricing

Answer 1

Answer:

B. skimming price

Explanation:

Based on the information provided within the question it seems that their decision to charge a high price is consistent with the skimming price strategy. This is a pricing strategy where a company charges the highest price possible for their newly released product and slowly goes lowering/adjusting the price as time goes by. This is what Gourmet Pets is doing since they believe that the customers care more about quality than price.