Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp?
A) skimming strategy followed by penetration strategy
B) penetration strategy followed by cost based strategy
C) penetration strategy followed by skimming strategy
D) penetration strategy only
E) skimming strategy only
Answer: A