Company a Uses a Pricing Approach Where the Initial Price

Multiple Choice

Company A uses a pricing approach where the initial price for a product is set high and then lowered, and Company B uses an approach where initial prices are set low in an effort to gain market share. What terms best describe these practices? $\begin{array} { | l | l | l | } \hline & \text { Company A } & \text { Company B } \\\hline 1 & \text { Predatory } & \text { Skimming } \\\hline 2 & \text { Penetration } & \text { Predatory } \\\hline 3 & \text { Skimming } & \text { Penetration } \\\hline 4 & \text { Skimming } & \text { Predatory } \\\hline 5 & \text { Predatory } & \text { Penetration } \\\hline\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5