When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?
A) Introductory price
B) Skimming price
C) Cash discount price
D) Penetration pice
E) Everyday low price

Question

Quizplus · Accepted Answer

Apple was using a skimming price strategy in its initial pricing of the iPhone. Skimming price involves setting a high price initially, to maximize profits from early adopters or customers willing to pay a premium price for a new product. As the product becomes more widely adopted and the market becomes more competitive, the price is gradually reduced (as Apple did with the iPhone) to appeal to a broader range of customers.

When Apple First Introduced Its IPhone in the U