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) a skimming price
B) a trial price
C) penetration pricing
D) bundle pricing
E) loss-leader pricing

Question

Quizplus · Accepted Answer

Xerox used a skimming price, which is a pricing strategy that involves setting a high price for a new product to recoup research and development costs and to generate early revenue from customers willing to pay a premium price for a new product.

The Average Price Xerox Charged When It Introduced the First