Dixon Electronics recently introduced a new computer with features unavailable from other products on the market.Dixon is charging a very high price for the computer and has plans to progressively lower the price over the next year.Dixon is most likely using a ________ strategy.
A)cost-plus
B)skimming
C)penetration
D)diversification

Question

Quizplus · Accepted Answer

Dixon Electronics is using a skimming pricing strategy by initially setting a high price for their new computer with unique features that are not available in other products on the market. The high price is meant to attract early adopters who are willing to pay a premium for novelty. Over time, Dixon plans to progressively lower the price to make the product more accessible to the mass market. This pricing strategy is often used by companies that introduce new and innovative products to the market.

Dixon Electronics Recently Introduced a New Computer with Features Unavailable