When Apple Computer Company introduced the iPhone-a combination phone,MP3 player,and Internet access device-in 2007,it was priced at $499,considerably higher than either the iPod or competing cell phones.Apple was probably pursuing a __________ pricing strategy.
A) market penetration
B) slotting allowance
C) price fixing
D) reference price
E) skimming

Question

Quizplus · Accepted Answer

Apple was following a skimming pricing strategy by initially setting a high price for the iPhone to appeal to early adopters and technology enthusiasts who are willing to pay a premium price for the latest and greatest technology. This strategy allows Apple to recover its high initial development and marketing costs and then gradually lower the price over time to attract a wider audience.

When Apple Computer Company Introduced the IPhone-A Combination Phone,MP3 Player,and