When Sony introduced the first consumer VCRs in the 1970s,the retail price exceeded $1,000.Within a few years,the price dropped well below $500.This is an example of:
A)skimming strategy.
B)penetration strategy.
C)cost-based strategy.
D)price ceiling strategy.
E)transfer pricing strategy.

Question

Quizplus · Accepted Answer

This is an example of a skimming strategy, where a high initial price is set to "skim" segments of consumers willing to pay the high price before it is lowered to attract a broader customer base.

When Sony Introduced the First Consumer VCRs in the 1970s,the