A leading hard-disk manufacturer introduces a new line of high-capacity disk drivers. After selling to elite customers at a high price point, the company slowly reduces its prices over a period of time. The company is engaging in
A) single pricing.
B) introductory price dealing.
C) price skimming.
D) penetration pricing.
E) predatory pricing.

Question

Quizplus · Accepted Answer

Price skimming involves setting a high price when a product is introduced and then gradually lowering the price over time. This strategy is used to maximize profits by targeting early adopters willing to pay a premium before appealing to more price-sensitive customers.

A Leading Hard-Disk Manufacturer Introduces a New Line of High-Capacity