Apple iPhoneApple Inc. iPhone went on sale on June 29, 2007. Apple's loyal and enthusiastic customer base is known for rushing to purchase its new products and the iPhone enjoyed a tremendous amount of "buzz" before its introduction. As expected, the iPhone entered the market at what many believed to be a high price ($599). However, within weeks the price was reduced to $399. By the end of 2007 over 8 million iPhones had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was a huge success for Apple and it exclusive U.S. carrier AT&T.On July 11th, 2008, Apple Inc. released the iPhone 3G, which it advertised as twice as fast as the original iPhone for half the cost. However, in order to obtain an iPhone at the new price of $199, buyers had to agree to a
two-year service contract with AT&T. This allows iPhone users to receive phone calls and email, and search the web on the same device. A single charge of $59.99 from AT&T included 450 minutes of cellular calls, with free nights and weekend minutes, unlimited data, visual voicemail, 200 text messages, rollover minutes, and unlimited mobile-to-mobile service within the AT&T network. This approach succeeded and over a million iPhone 3Gs were sold during the introductory weekend.Refer to Apple iPhone. Apple and AT&T have several options available for competing with Samsung and its Instinct phone. If Apple and AT&T choose to compete by pricing their product at a low price to drive Samsung out of the market, this would be considered _____.
A. price fixing
B. retail price maintenance
C. price discrimination
D. predatory pricing
E. fair competition
Answer: D
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Wendy's restaurants have experienced declining sales recently due to consumers' increased interest in healthier eating and their preference for fast-casual restaurants such as Chipotle and Modern Market. In order to attract more customers to Wendy's, the chain expanded the number of items they are offering on the $1 menu, and many of these items are priced below cost. Wendy's is most likely utilizing a _____ pricing objective.
A. survival B. profit C. market share D. return on investment
A members-only shopping club, where members can buy goods at large discounts describes
A) specialty club. B) membership-based club. C) exclusive club. D) private shopping club.
Bendel Inc. has an operating leverage of 4.8. If the company's sales increase by 13%, its net operating income should increase by about:
A. 62.4% B. 13.0% C. 2.7% D. 47.8%
High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?
A. transnational B. overall cost leadership C. global D. multidomestic