Question

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 price

E. everyday low price

Answer 1

B. skimming price

Step-by-step explanation:

Skimming price -

It is the pricing method , which involves the company uses very high tag for a particular time as soon as it is launched in the market and as it time passes buy , the price of the particular product gets reduced , this process is known as skimming price .

This strategy helps to the product to stay in the market for long run , as time passes , the price of the particular commodity reduces and people can still buy it at a much lower price , in age where new products get launched daily .