Which pricing strategy targets consumers willing to pay a premium for innovations?

The pricing strategy that effectively targets consumers willing to pay a premium for innovations is price skimming. This strategy involves setting a high initial price for a new or innovative product to maximize revenue from those who are less price-sensitive and eager to adopt new technologies or experiences.

Businesses utilizing price skimming often aim to create a perception of exclusivity and superior quality for their innovative offerings. This is particularly common in technology markets, where early adopters are willing to pay more for cutting-edge features before the price is gradually lowered over time as competition increases and market saturation occurs.

In contrast, while value-based pricing focuses on setting prices based on perceived value to customers, it may not specifically target those willing to pay a premium for innovations. Dynamic pricing is primarily about adjusting prices based on real-time demand and market conditions, making it less about targeting premium payers specifically. Cost-plus pricing involves calculating costs and adding a markup, which does not necessarily align with the strategy of appealing to high-value consumers seeking innovative products.