What is the term for the pricing strategy where a company achieves higher profits by selling a smaller quantity of products at a higher price?

Retailing and Wholesaling Strategy MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Retailing and Wholesaling Strategymarketing-mcqs › retailing-and-wholesaling-strategy
Published
30 Aug 2021
Last updated
28 May 2026

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Explanation

Price skimming is a strategy where a business sets a high initial price for a new product to maximize profits from early adopters, resulting in fewer units sold but higher margins. This differs from optional product pricing, market penetration pricing, and product line pricing, which have different objectives and approaches.

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