The first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version.People waited in line overnight so they could be one of the first to own this unique tablet device.Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?
A)price lining
B)penetration pricing
C)skimming pricing
D)customary pricing
E)target pricing

Question

Quizplus · Accepted Answer

Apple used skimming pricing strategy, which involves setting a high price for a new product to recoup research and development costs as well as create an image of a high-quality, exclusive product. With this approach, Apple was able to capitalize on the buzz and excitement surrounding the iPad launch to generate high profits before eventually lowering the price to attract a broader customer base.

The First Apple IPad Was Introduced in 2010 at an Initial