Motorola introduced a new personal communicator priced at a significant premium over competing models. Initially, Motorola will concentrate on the business user but the firm plans to reduce the price later and capture a share of the consumer market. This policy of beginning with a high price and then moving to a lower price is referred to as:
a. product differentiation.
b. market segmentation.
c. price administration.
d. time segmentation.
e. life cycle pricing.
Answer: D