The pricing policy that seeks to set prices relatively high in order to attract the wealthy segment of the market is

Answer Details

The pricing policy that seeks to set prices relatively high in order to attract the wealthy segment of the market is called market skimming. Market skimming is a pricing strategy in which a company sets a relatively high price for its product or service in order to target a segment of the market that is willing to pay a premium for the product or service. This segment is typically composed of wealthy or high-end consumers who are willing to pay more for premium features, quality, or exclusivity. Market skimming is often used by companies that are introducing a new product or service and want to recoup their development and marketing costs quickly. By setting a high price, they can earn a significant profit from the initial sales to the high-end segment of the market. Over time, the price may be lowered to attract a wider audience, but the initial high price helps the company establish the product or service as a premium offering, which can help to build brand equity and increase demand. Therefore, the pricing policy that seeks to set prices relatively high in order to attract the wealthy segment of the market is market skimming.