A leading hard-disk manufacturer introduces a new line of high-capacity disk drives.After selling to elite customers at a high price point,the company slowly reduces its prices over a period of time.The company is engaging in
A)single pricing.
B)introductory price dealing.
C)price skimming.
D)penetration pricing.
E)predatory pricing.

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 emerge.

A Leading Hard-Disk Manufacturer Introduces a New Line of High-Capacity