Which pricing approach involves setting higher prices initially to capture revenue from customers willing to pay more for a new product?

Personal Selling and Sales Promotion MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Personal Selling and Sales Promotionmarketing-mcqs › personal-selling-and-sales-promotion
Published
27 Aug 2021
Last updated
28 May 2026

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Explanation

Market skimming pricing is a strategy where a company sets a high price for a new product to maximize revenue from segments that are less price-sensitive. In contrast, market penetration pricing aims to attract a large customer base quickly by offering lower prices. Business line and product line pricing refer to pricing strategies within related product groups.

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