When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called
A) customary pricing.
B) odd-number pricing.
C) penetration pricing.
D) price skimming.
E) prestige pricing.

Question

Quizplus · Accepted Answer

Sharp's pricing strategy was to set the initial price of its graphing calculators high, which is known as price skimming. As competitors entered the market, Sharp lowered the price to remain competitive.

When Sharp First Introduced Its Line of Graphing Calculators, It