Excelsior Corp.launches a new hand-held personal digital assistant (PDA)for busy corporate executives.The initial retail price is set at $699.One year later, in an effort to reach a broader market, the price is lowered to $299.Which of the following describes the pricing strategies used by Excelsior Corp?
A)skimming strategy followed by penetration strategy
B)penetration strategy followed by cost-based strategy
C)penetration strategy followed by skimming strategy
D)penetration strategy only
E)skimming strategy only

Question

Quizplus · Accepted Answer

Excelsior Corp initially used a skimming strategy by setting a high price to target early adopters, then switched to a penetration strategy by lowering the price to attract a broader market.