Market skimming makes sense when a product's quality and image support its higher price, and enough buyers want the product at that price.

Question

Quizplus · Accepted Answer

Market skimming involves setting a high price for a product initially and then gradually lowering it as competition enters the market. This strategy is effective when the product has a unique value proposition and a strong brand image that justifies the higher price. Additionally, there must be enough demand for the product at the high price point. Therefore, the statement is true.

Market Skimming Makes Sense When a Product's Quality and Image