When Apple released its first iPhone in 2007,it charged customers $599.Shortly thereafter,it reduced the price to $399 for the exact same device.Apple's decision to set a relatively high price for a period of time after the product launched and then decrease the price to a level that would be more sustainable over time reflects which pricing strategy?
A)volume maximization
B)target pricing
C)underpricing
D)survival pricing
E)profit maximization

Question

Quizplus · Accepted Answer

Apple's initial high pricing followed by a reduction is a strategy to maximize profits by capturing early adopters willing to pay more, then lowering the price to attract a broader market.

When Apple Released Its First IPhone in 2007,it Charged Customers