The newest version of a product like Bose headphones is likely to use _____, while the new version of Red Bull is likely to use _____ .
A) penetration pricing; price skimming
B) price skimming; psychological pricing
C) psychological pricing; penetration pricing
D) price skimming; penetration pricing
E) price skimming; promotional pricing

Question

Quizplus · Accepted Answer

Bose headphones are likely to use price skimming as they have a premium brand image and can initially set a high price for the latest version to capture early adopters. On the other hand, Red Bull is likely to use penetration pricing as they operate in a highly competitive market and offer a unique product that needs to appeal to a broader customer base. They can set a lower price to encourage more people to try their product and gain market share.

The Newest Version of a Product Like Bose Headphones Is