When Microwave Ovens Were in the Introduction Stage of the Product

question 250

Multiple Choice

When microwave ovens were in the introduction stage of the product life cycle, some consumers were willing to pay exorbitant prices for the innovative ovens.Taking advantage of this strong customer desire, marketers set the price for microwave ovens at the highest initial price that customers with a strong desire for the product were willing to pay.Marketers of microwave ovens were using a _________ pricing strategy.

• A)skimming
• B)penetration
• C)prestige
• D)price lining
• E)bundle

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Definitions:

Estimated Error

A quantification of the difference between an observed value and the true value, often used in the context of statistical models to measure accuracy.

Sales And Experience

Refers to the relationship or correlation between the sales performance and the level of experience in a particular field or job.

Prediction Interval

A range of values that is likely to include the value of an unknown parameter for a future observation, with a certain level of confidence.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter at a given level of confidence.