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-number pricing.
C)penetration pricing.
D)price skimming.
E)reference pricing.

Question

Quizplus · Accepted Answer

Sharp initially set the price high for its graphing calculators, which is characteristic of price skimming strategy, where a company charges a high price for its product during the introduction phase and gradually lowers the price over time. The other options, such as customary pricing, odd-number pricing, penetration pricing, and reference pricing, do not apply to the pricing strategy used by Sharp.

When Sharp First Introduced Its Line of Graphing Calculators, It