What is the pricing approach called when a company sets high prices for a product during its launch phase and gradually lowers them over time?

Developing Marketing Strategies and Plans MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Developing Marketing Strategies and Plans

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Subject
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Published
3 Oct 2021
Last updated
28 May 2026

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Explanation

Option A refers to push promotional pricing, which involves pushing products through distribution channels. Option B, market penetration pricing, sets low initial prices to gain market share quickly. Option C, price skimming strategy, involves setting high prices at launch and reducing them later to maximize profits. Option D, premium quality pricing, focuses on charging higher prices based on superior product quality.

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