When Apple first introduced its iPhone in the U.S.market,it priced it at $600.Several months later,Apple reduced the price to $400.And several months after that,it reduced the price again to $200.What pricing policy was Apple using in its initial price strategy?
A)introductory price
B)skimming price
C)cash discount price
D)penetration price
E)everyday low price

Question

Quizplus · Accepted Answer

A skimming price policy tries to sell the top (skim the cream)of a market-the top of the demand curve-at a high price before aiming at more price-sensitive customers.A skimming policy usually involves a slow reduction in price over time.As price is reduced,new target markets are probably being sought.

When Apple First Introduced Its IPhone in the U