The Average Price Xerox Charged When It Introduced the First

question 37

Multiple Choice

The average price Xerox charged when it introduced the first stand-alone fax machine was $12,700. This premium price was a way for Xerox to recoup some of the research and development costs that went into production. Xerox used ________.

• A) a skimming price
• B) a trial price
• C) penetration pricing
• D) prestige pricing
• E) target costing

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Definitions:

Marketing Program

A comprehensive plan that integrates all marketing efforts, including advertisements, promotions, and selling strategies, to achieve the marketing objectives.

Marketing Mix Elements

Components of a marketing strategy, traditionally identified as product, price, place, and promotion, used to meet consumers' needs and business goals.

Strategic Combination

A tactic of integrating diverse strategies, resources, or actions to reach more comprehensive and effective strategic goals.

Yield Management

A pricing strategy used by companies to increase revenue by considering both the price and the inventory available to meet demand.