Question

Elite Motors has developed a new car model with the best fuel efficiency on the market, innovative navigation technology that takes traffic and road conditions into account, extensive safety features, and luxurious style to attract more customers. Since this car offers so many features that customers are willing to pay for, Elite Motors decided to charge the highest possible price that buyers who want the product will pay. The pricing strategy used in this scenario is

Answer 1

Pricing skimming.

Step-by-step explanation:

This pricing skimming marketing strategy is used when the organization significantly raises the price of some good or service while it is still new to the market or has functions not yet developed by other competitors. The goal of this strategy is to recover production costs and aggregate technology by increasing the price to which your customers would pay for the product, and after meeting the first customer demand, the price is reduced over time.