When Apple Computer Company Introduced the IPhone-A Combination Phone,MP3 Player,and

question 24

Multiple Choice

When Apple Computer Company introduced the iPhone-a combination phone,MP3 player,and Internet access device-in 2007,it was priced at $499,considerably higher than either the iPod or competing cell phones.Hoping to attract innovators and early adopters,Apple was most likely pursuing a __________ pricing strategy.

• A) market penetration
• B) slotting allowance
• C) price fixing
• D) reference price
• E) price skimming

---

Definitions:

Investment Spending

Expenditures made by entities (individuals, companies, or governments) on capital goods, including buildings, machinery, and technology, to increase productivity.

Saving Incentives

Financial or policy incentives designed to encourage individuals or companies to save money rather than spend it.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal.

Investment

The action or process of investing money for profit or material result.