The practice of introducing a new product on the market with a high price and then lowering the price over time represents which of the following?

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In this question, we are asked to identify which pricing strategy is described by introducing a new product at a high price and then lowering the price over time.
Option 1: 'leader pricing' involves setting some products at or below cost to attract customers into the store, hoping they will buy other items; it does not describe a high initial price followed by reductions, so this is not the best fit.
Option 2: 'price skimming' is exactly the practice of launching a new product with a high price to maximize early adopters' willingness to pay, then gradually reducing the price to attract more price-sensitive customers as the product matures. This aligns with the described approach.
Option 3: 'penetration pricing' uses a low initial price to quickly gain market share and discourage competitors, with the goal of achieving wide market adoption; this is the opposite of starting high and lowering over time.
Option 4: 'prestige pricing' sets consistently high prices to maintain a perception of quality and exclusivity, not a strategy of high initial price followed by reductions over time.

2025SU BSN 100 01 Quiz: Chapter11

The practice of introducing a new product on the market with a high price and then lowering the price over time represents which of the following?

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