Which of the Following Terms Describes a Pricing Strategy in Which

question 60

Multiple Choice

Which of the following terms describes a pricing strategy in which a new product's initial price is set high and then eventually lowered to appeal to a broader range of customers?

• A) Penetration pricing.
• B) Price skimming.
• C) Customer pricing.
• D) Designed pricing.
• E) Market-share pricing.

---

Definitions:

Robert Axelrod

A political scientist known for his work on the theory of cooperation and competition, including the development of the iterated prisoner's dilemma model.

Tit-for-tat

A strategy in game theory where a player responds to an opponent's action with equivalent action, promoting cooperation by rewarding cooperation and punishing defection.

Prisoner's Dilemma

A scenario in game theory that illustrates why individuals might not cooperate, even when it seems that doing so would be in their collective best interest.

Zero-sum Game

A situation in competitive theory where one party's gain is exactly balanced by the losses of others. In a zero-sum game, the total benefit to all players in the game, for every combination of strategies, always adds up to zero.