Advanced Competitive Strategy | Online Course Support

What is true about intertemporal pricing?


This is true. For network goods it can in fact be beneficial to initially set a low price to attract many customers.


This is true. Intertemporal pricing suggests that firms initially set high prices to sell to customers with a high willingness to pay. Afterwards, firms should decrease the price so that consumers with lower willingness to pay are reached.


This is correct. If a product is durable then consumers might just delay their purchasing decision and wait for the price to decrease. This erodes the advantage of this pricing strategy and leads to slower sales.

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