AT&T offers high-speed Internet service to new subscribers for $29.99 per month for the first six months and then raises the price to $49.99 per month. This offer is an example of a(n)
A) teaser strategy.
B) switching cost.
C) lock-in strategy.
D) intertemporal pricing strategy.

Question

Quizplus · Accepted Answer

This offer is an example of a teaser strategy, where a company offers a low introductory price to attract new customers, with the price increasing after an initial period.

AT&T Offers High-Speed Internet Service to New Subscribers for $29