Remote Company has developed a new universal remote that works with all cable, o

Question

Remote Company has developed a new universal remote that works with all cable, over the air and streaming channels. While the device is unique, it’s competitors will soon (6-12 months) be able to reverse engineer it and introduce their own version into the marketplace. Remote Company’s best pricing strategy would be: A. Psychological pricing B. Penetration pricing C. Cannot be determined. D. Skimming price Remote Company has developed a new universal remote that works with all cable, over the air and streaming channels. While the device is unique, it’s competitors will soon (6-12 months) be able to reverse engineer it and introduce their own version into the marketplace. Remote Company’s best pricing strategy would be: A. Psychological pricing B. Penetration pricing C. Cannot be determined. D. Skimming price A. Psychological pricing B. Penetration pricing C. Cannot be determined. D. Skimming price

Explanation / Answer

The correct option is : Option D- Skimming Price.

Explanation: Whenever a company launches a product which is unique and doesn't have any immediate competitor, Skimming price strategy must be followed so as to capture maximum market value till the product is copied and launched by the competitor. So, in the instance of a similar launch by the competitor in 6 to 12 months, the price could be dropped to match the market.

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