Question

________ pricing involves raising prices incrementally to the point where the best combination of volume and margin is achieved during the mature stage of the product life-cycle.

A) Low-cost-leader

B) Reduce-focus

C) Skim

D) Harvest

E) Penetration

Answer 1

Harvest pricing involves raising prices incrementally to achieve the best combination of volume and margin during the mature stage of the product life-cycle.

Step-by-step explanation:

The correct answer is D) Harvest.

Harvest pricing involves raising prices incrementally to the point where the best combination of volume and margin is achieved during the mature stage of the product life-cycle. This strategy allows the company to maximize profits while still maintaining market share.

For example, a well-established brand that has built a strong reputation over many years may use harvest pricing to take advantage of its loyal customer base and maintain profitability even as the market becomes more competitive.