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

question 7

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) Discount
• B) Survival
• C) Psychological
• D) Skimming
• E) Penetration

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Definitions:

Mnemonic

A learning technique that aids in the recall of information by associating complex information with simple, memorable cues.

Acronym

A word formed from the initial letters or groups of letters of words in a phrase or series of words, used as an abbreviation (e.g., NASA, scuba).

Hum

A low, steady, continuous sound often produced by machinery, electronic devices, or by a group of similar sounds blending together.

Misinformation Effect Paradigm

A phenomenon in which a person's recall of an event becomes less accurate due to the introduction of misleading information.