Question
Question 4 Samsung often launches its products with a high initial price and gradually lowers it over time. What pricing strategy is commonly associated with Samsung's high-end smartphones and other electronic products? Discount pricing Price Skimming Market saturation pricing Penetration pricing 1.5 pts
Answer
4.7
(100 Votes)
Imani
Professional · Tutor for 6 years
Answer
B
Explanation
The pricing strategy described in the question - starting with a high initial price that gradually lowers over time - matches the definition of Price Skimming. Among the provided options, Discount pricing, Market saturation pricing, and Penetration pricing do not fit with Samsung's strategy for their high-end products because:- Discount pricing means offering products at reduced costs to attract customers. While Samsung may use this strategy periodically to move products or promote new ones, it's not their primary approach with high-end smartphones. - Market saturation pricing is not validated since it implies a method where prices are lowered to evade intense competition until the market is saturated, which does not correspond to the strategy employed by Samsung, for its high-end smartphones. - Penetration pricing refers to setting a low initial price to penetrate the market quickly and deeply, which is not what Samsung does with its premium range.Hence, this illustrates that the pricing strategy Samsung uses for its high-end smartphones and other electronic products is Price Skimming.