What stage of the product life cycle is price skimming normally associated with? (A) Establishment (B) Maturity (C) Steady state (D) Decline - HSC - SSCE Business Studies - Question 20 - 2001 - Paper 1

Price skimming is a pricing strategy primarily used during the establishment stage of a product's life cycle. This approach allows companies to maximize profits from early adopters who are willing to pay a higher price before gradually lowering it to attract a broader audience. In this stage, the focus is on recovering initial costs associated with development and marketing, making establishment the appropriate stage for price skimming.