When microwave ovens were in the introduction stage

When microwave ovens were in the introduction stage of their product life cycle, some
consumers were willing to pay exorbitant prices for these innovative ovens. Taking advantage of
this strong consumer desire, marketers set the price for microwave ovens at the highest initial
price possible. Marketers of microwave ovens used a __________ pricing strategy.
skimming
bundle
prestige
penetration
price lining

Skimming pricing strategies are used for new, innovative products that are highly sought after by
a significant number of customers. Such customers are relatively insensitive to price because of the
product's ability to satisfy their needs and wants in relation to alternative products.
A hardware store advertises a ⅜-inch Black and Decker Power Drill for $29.95. You enter the
store intending to purchase the drill. The salesperson informs you that they are all sold out. She
tells you that the "sale" drills were factory seconds and that if you are going to be doing any kind
of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario
has elements of which type of illegal pricing practice?
conditional bargains
bait and switch
price fixing
price discrimination
predatory pricing
This scenario has all the elements of bait and switch, which is a deceptive practice whereby a
firm offers a very low price on a product (the bait) to attract customers to a store. Once in the store, the
customer is persuaded to purchase a higher-priced item (the switch) using a variety of tricks, including not
having the item in stock and downgrading the item. See Figure 14-10 in the textbook.