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A firm launches a new gadget at a high price and lowers it over time. This strategy is:
APrice stripping
BPrice sharing
CPrice shifting
DPrice skimming
Answer & Solution
Correct answer: D. Price skimming
1. Early buyers pay the most.
2. The price falls as the product ages.
3. This is price skimming.
_Source: OpenStax Introduction to Business, Chapter 11, Creating Products and Pricing Strategies to Meet Customers' Needs._
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