When Sony introduces its latest 3D television at a very high price to consumers who are willing to pay top dollar for the latest technology, then gradually lowers the price in a stepwise fashion to attract additional market segments, it is practicing a _____ strategy.

Question

Quizplus · Accepted Answer

This strategy is known as market skimming, where a company introduces a new product at a high price to target early adopters or those willing to pay more for the latest technology, and then gradually lowers the price to target additional market segments. Market penetration strategy would involve setting a low initial price to gain market share quickly, diffusion refers to the spread of the product through the market, and product obsolescence is a situation where a product becomes outdated and no longer desirable to consumers.

When Sony Introduces Its Latest 3D Television at a Very