Xbox is releasing a new game system and will most likely utilize a _______ pricing strategy where they will charge the highest possible price they believe consumers will pay during the introductory stage of the product life cycle. However, when Frito Lay unveils a new product such as Tostitos Rolls, they utilize a _____ pricing strategy by setting a low price and build market share quickly as well as discourage competitors from entering the market.
price skimming; penetration
penetration; product-line
product-line; price skimming
captive; random discounting
Answer: price skimming; penetration