In order to recover research and development costs rapidly and earn initial high profits, Sony set a high price for its plasma TVs. What is the pricing strategy Sony used?
A) market-share
B) skimming
C) penetration
D) competitive

Question

Quizplus · Accepted Answer

Sony used a price skimming strategy, which involves setting high initial prices to "skim" revenue layers from the market willing to pay the high price, thus recovering research and development costs quickly while making high profits.

In Order to Recover Research and Development Costs Rapidly and Earn