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Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox was using a(n) _____ strategy to help recover the cost of its research and development.

a. penetration pricing
b. cost-plus pricing
c. skimming pricing
d. above-market pricing
e. target ROI pricing

1 Answer

5 votes

Answer:

c. skimming pricing

Step-by-step explanation:

Based on the information provided within the question it can be said that in this scenario Xerox was using a skimming pricing strategy to help recover the cost of its research and development. This is a pricing strategy in which the company places a really high initial price for it's new product, but then goes lowering the price as time passes. This also makes individuals believe that they are getting a bargain when prices begin to drop and decide to buy more.