When Apple Inc

question 120

Multiple Choice

When Apple Inc.developed and introduced the iPhone it was unique as it essentially combined a cellular phone with an iPod,an Internet browser,and email capabilities.As such,in the short run it seemed that demand for the product would be inelastic,with no real existing competition.The recommend pricing strategy in such a situation would be:

• A) low initial price,rising slightly when entering the growth stage
• B) high initial price,falling slightly when entering the growth stage
• C) high price,continuing through growth and maturity
• D) low price,continuing through growth and maturity
• E) low price initially,rising constantly through growth and into maturity

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Definitions:

The Internet

A global network of interconnected computers and servers that allows for the exchange of information and communication across vast distances.

Specialty Line

A range of products or services that cater to a particular niche market, usually distinguished by their high quality or uniqueness.

Market

A place or mechanism where buyers and sellers meet to engage in exchange of goods and services.

Atmospherics

The physical elements of a store or business environment designed to influence a consumer's mood and behavior.