Game Cube video game console was launched with an introductory price of $199.95, which was quite low for products of this category. The reasoning behind this low pricing was that the game cube manufacturers expected competition to move in rapidly. Identify the pricing policy used here.
A) Penetration policy
B) Prestigious policy
C) Skimming policy
D) Going-rate policy

Question

Quizplus · Accepted Answer

This policy is used when the firm expects competition to move in rapidly and when demand for the product is, at least in the short run, price elastic. This policy is also used to obtain large economies of scale and as a major instrument for rapid creation of a mass market.

Game Cube Video Game Console Was Launched with an Introductory