Troy Bourbon, a Local Bourbon Distillery, Initially Sold Its Product

Multiple Choice

Troy Bourbon, a local bourbon distillery, initially sold its product at a premium price of $45 because the company believed consumers would view the bourbon as a prestige item. The company decided that when startup costs had been fully recovered and competition became imminent, the company would reduce the price to $30 which was more expected in the market. The distillery is using a

A) variable pricing strategy.
B) price skimming strategy.
C) price lining strategy.
D) penetration pricing strategy.