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Which pricing strategy involves charging a high price due to a substantial competitive advantage, but this advantage may not be sustainable in the long run?
  • a)
    Price Skimming
  • b)
    Captive Product Pricing
  • c)
    Premium Pricing
  • d)
    Value Pricing
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which pricing strategy involves charging a high price due to a substan...
Premium Pricing involves setting a higher price for a product due to a unique competitive advantage. However, this advantage may not last as new competitors enter the market, leading to price reductions. Examples include luxury products like Cunard Cruises and first-class air travel, where customers are willing to pay more for a premium experience.
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Which pricing strategy involves charging a high price due to a substantial competitive advantage, but this advantage may not be sustainable in the long run?a)Price Skimmingb)Captive Product Pricingc)Premium Pricingd)Value PricingCorrect answer is option 'C'. Can you explain this answer?
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