When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called
A) customary pricing.
B) odd-even pricing.
C) penetration pricing.
D) price skimming.
E) prestige pricing.

Question

Quizplus · Accepted Answer

The pricing strategy initially used by Sharp is price skimming, where the price was set high to target early adopters and gain a competitive advantage, and then gradually lowered as more competitors entered the market.

When Sharp First Introduced Its Line of Graphing Calculators, It