If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as
A)penetration pricing.
B)psychological pricing.
C)price lining.
D)price skimming.
E)odd-number pricing.

Question

Quizplus · Accepted Answer

The initial pricing strategy described in the scenario is an example of price skimming, which involves initially setting a high price for a new product before gradually lowering it over time.

If Norelco Introduced a New Electric Razor That Sonically Removes