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:

Inventories

The raw materials, work-in-process products, and finished goods that a company holds for the purpose of sale in the near future.

Manufacturing Firms

Companies that produce goods using raw materials and various processes and machinery, often involving large-scale production.

Retailers

Businesses that sell goods or commodities directly to consumers, often from physical locations or through online platforms.

Credit Policies

Credit policies refer to the guidelines and standards set by a business regarding the extension of credit to customers, including terms, conditions, and criteria for creditworthiness.