Author Question: Sony management decided to use skimming as a pricing strategy for its newest line of high-definition ... (Read 137 times)

bobypop · **on:** Jun 29, 2018

Sony management decided to use skimming as a pricing strategy for its newest line of high-definition television (HDTV) sets. It should be aware that this strategy does not
A) generate capital to cover research and development costs.
B) discourage competitors from entering the market.
C) provide flexibility in the introductory base price.
D) protect the firm from covering costs if prices are set too low.
E) reduce the stress that may be placed on the firm's production capabilities.

Question 2

If Norelco introduced a new electric razor that sonically removes hair and priced it first at 175 and then at 150 before reducing the price to 100, the firm's initial pricing strategy is known as
A) penetration pricing.
B) psychological pricing.
C) price lining.
D) price skimming.
E) odd-even pricing.