Question

A cell phone company introduced its brand-new 5G phone into the market. The phone featured global network capability, the fastest processor on the market, and the clearest connection quality. The phone also came with preloaded customized apps. The company chose to use skim pricing at the rollout and charged top dollar for its first customer. Because of its pricing choice, what could be predicted about the customer demand for the phone?

Answer 1

Answer:

demand will be low

Explanation:

According to my research on different pricing strategies, I can say that based on the information provided within the question demand will be low. Since they will be charging high amounts the demand will be lower because only a select few amount of people will be able to afford it. Usually their consumer base will be made up of enthusiasts and loyal customers that have supported the brand for years and have a good economic standing. Demand will slowly rise as competition sets in and prices decrease.

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