The average price Xerox charged when it introduced the first stand- alone fax machine was $12,700.This premium price was a way for Xerox to recoup some of the research and development costs that went into production.Xerox used .
A)target costing
B)penetration pricing
C)a skimming price
D)prestige pricing
E)a trial price

Question

Quizplus · Accepted Answer

Xerox used a skimming price strategy, which involves setting a high initial price to recover R&D costs and target early adopters willing to pay more.

The Average Price Xerox Charged When It Introduced the First