Question

When eight-inch satellite dishes were introduced to consumers for Digital Satellite Systems at a high price, only to be lowered later, this strategy is called_____________. Group of answer choices
A.price skimming
B.penetration pricing
C.plus-one pricing
D.harvest pricing

Answer 1

Answer:

A. Price skimming.

Explanation:

Skimming can encourage the entry of competitors since other firms will notice the (artificially) high margins available in the product, they will quickly enter.