Asked by Carter Weeks on Feb 18, 2024
Verified
The iPad at its initial launch is an example of price skimming.
Entrepreneurship
A way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them.
- Recognizing the use of price skimming as a pricing strategy.
- Analyzing the effectiveness of price skimming in product launches.
- Understanding the concept of price skimming in marketing.
Verified Answer
DM
Danessa MacDonald
Feb 18, 2024
Final Answer :
True
Explanation :
Price skimming is a pricing strategy where a company sets a high price for a new product at launch and gradually lowers the price over time. This strategy is usually used for products with a high demand and low supply, which was the case with the iPad at its launch in 2010. The starting price for the iPad was $499, making it an example of price skimming.
Learning Objectives
- Recognizing the use of price skimming as a pricing strategy.
- Analyzing the effectiveness of price skimming in product launches.
- Understanding the concept of price skimming in marketing.
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