When Sony introduced the first high-definition television to the Japanese market in 1990, it was priced at $43,000, which is an example of partial-cost recovery pricing.

Question

Quizplus · Accepted Answer

The pricing strategy used by Sony, pricing the first high-definition television at $43,000, is an example of price skimming, not partial-cost recovery pricing. Price skimming involves setting a high price before other competitors come into the market to maximize profit from the segment of consumers willing to pay a high price for the novelty of new technology.

When Sony Introduced the First High-Definition Television to the Japanese