Market skimming pricing makes sense under all the following conditions, EXCEPT if ________.
A) a sufficient number of buyers have a high current demand
B) the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear
C) the high initial price does not attract more competitors to the market
D) consumers are likely to delay buying the product until its price drops
E) the high price communicates the image of a superior product

Question

Quizplus · Accepted Answer

Market skimming pricing involves setting a high price initially and then gradually lowering the price over time. If consumers are likely to delay buying the product until its price drops, this strategy may not be effective, as it relies on capturing the segment of the market that is willing to pay a premium for early access or perceived value.

Market Skimming Pricing Makes Sense Under All the Following Conditions