Over time, Apple has had great latitude in setting and maintaining a premium price. Its long-term strategy was to have only a single model in a product line targeted at high-end users. However, lower-cost rival smartphones, many of which were powered by Google's Android operating system, entered the market. One concern for Apple is
A)the ability to change prices quickly.
B)speeding up the diffusion of innovation process.
C)brand extension confusion.
D)charging a lower price to gain a foothold in the market.
E)the challenge of pricing a single product versus multiple products in an expanding product line.

Question

Quizplus · Accepted Answer

The challenge of pricing a single product versus multiple products in an expanding product line is the concern for Apple as lower-cost rival smartphones enter the market. With only a single model in their product line targeted at high-end users, pricing decisions become more difficult as they have to ensure that their product remains competitive in the market without compromising their premium price strategy.

Over Time, Apple Has Had Great Latitude in Setting and Maintaining