If demand decreases by 13% when the price increases by 10%, what type of pricing strategy should the marketer consider?

The scenario describes a situation where demand is relatively inelastic, as a 10% increase in price results in only a 13% decrease in quantity demanded. This indicates that consumers are not very sensitive to price changes for this particular product.

Price skimming is a strategy that involves setting a high price initially and then gradually lowering it over time. It is often used for new innovative products or technology that consumers perceive as having high value. Given that the demand does not drop significantly with a price increase, a price skimming strategy could be effective because it allows the company to capture higher margins at the onset from customers who are willing to pay more for the product.

The other strategies do not align with the situation described. Penetration pricing involves setting a low price to gain market share quickly, which would not suit a scenario where consumers are somewhat inelastic. Discount pricing focuses on reducing prices to attract customers, which does not leverage the situation’s inelastic demand. Value-based pricing, which sets prices based on perceived value rather than costs, may not be directly applicable in this situation where demand remains relatively stable against price increases.

Thus, price skimming is the most appropriate strategy for the given context.