When a manufacturer of digital video recorders initially charged a high price but later dropped the price after others entered the market,it was practicing which pricing method?

Question

Quizplus · Accepted Answer

This is an example of skimming pricing, where a company sets a high price for a new product initially to maximize profits from the segment of the market willing to pay a premium, and then lowers the price over time to attract more price-sensitive customers.

When a Manufacturer of Digital Video Recorders Initially Charged a High