Dell prices new computer models to minimize the disruption of demand for its existing products.This implies a strategy of ________.
A) Lowering the prices of existing models to maintain separation of price between new and existing models
B) Lowering prices of all models to accommodate for increases in technology
C) Raising all prices together in order to confuse the public to thinking all the technology is at the same level
D) Raising and lowering prices of all models in order to create a mixed effect
E) None of the above

Question

Quizplus · Accepted Answer

By minimizing the disruption of demand for existing products, Dell is attempting to maintain the separation of price between its new and existing models. Lowering the prices of existing models would help in achieving this strategy. Option B is not relevant as it talks about accommodating for increases in technology, which is not the main concern here. Option C and D are not plausible strategies for Dell. Therefore, the best answer would be A.

Dell Prices New Computer Models to Minimize the Disruption of Demand