When a Computer Company Initially Charged a Low Price for a New

question 68

Multiple Choice

When a computer company initially charged a low price for a new computer and then raised the price after gaining a large market share,it was using which pricing strategy?

• A)Low-ball
• B)Subterranean
• C)Psychological
• D)Skimming
• E)Penetration

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Definitions:

QuickBooks

An accounting software package developed and marketed by Intuit, used for small and medium-sized businesses.

Payment Method

The means or process by which a payment is made and received, which can include cash, checks, credit cards, or electronic transfers.

Audit Trail

A record that shows the chronological sequence of the documentation of financial transactions and changes in an accounting system.

Transactions

Financial activities or operations involving the exchange of goods, services, or funds between two or more parties.