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WAEC Marketing 2023 Objective — Question 18

Question 18 of 40 from the West African Examinations Council (WAEC) Marketing 2023 Objective paper, with the correct answer and a full explanation.

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Which pricing strategy is adopted by a company that sells its product for #200 when the prevailing market price for same product is #150?

  • A. Skimming pricingCorrect
  • B. Penetration pricing
  • C. Psychological pricing
  • D. Competitive pricing

Explanation

Setting a price higher than the prevailing market price (to maximize returns early) is price skimming.

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