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Question
Troy Bourbon, a local bourbon distillery, initially sold its product at a premium price of $45 because the company believed consumers would view the bourbon as a prestige item. The company decided that when startup costs had been fully recovered and competition became imminent, the company would reduce the price to $30 which was more expected in the market. The distillery is using a
a. variable pricing strategy.
b. skimming price strategy.
c. price lining strategy.
d. penetration pricing strategy.
Answer
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