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When New Products Are First Introduced to the Market, They

Question 51

Multiple Choice

When new products are first introduced to the market, they are seen to be superior to other offerings on the market at the time; due to their perceived innovation or quality advantage. For example solar panels were initially very expensive to install (in the tens of thousands of dollars) . Today, you can install a system on your home for a fraction of the price. This could best be described as an example of:


A) penetration pricing.
B) price skimming.
C) prestige pricing.
D) differential pricing.
E) odd-even pricing.

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