In price skimming, which approach is used to capture the attention of early adopters?

• A. To capture early adopters willing to pay premium
• B. To maximize profits from early adopters
• C. To establish long-term market share
• D. To quickly devalue the product

Answer: (A)

Price skimming starts by charging a high price to attract early adopters who see the product as new or premium. This approach leverages their willingness to pay a premium and helps recover development costs while creating initial demand and buzz. As the initial high-paying segment taps out, the price is gradually lowered to bring in more price-sensitive buyers, expanding sales over time. So the goal is to capture attention with a premium price first, then broaden the market as prices drop. The other ideas don’t fit because skimming isn’t about quickly devaluing the product or solely maximizing profits from early adopters or aiming primarily for long-term market share—the tactic centers on the premium start and subsequent price reductions.