Which of the following should be true for a skimming price to be successful?
A) Target consumers are price sensitive.
B) Supply exceeds demand.
C) Demand is stable.
D) The producer uses intensive distribution.
E) There is little chance that competitors can quickly enter the market.

Question

Quizplus · Accepted Answer

Skimming pricing is a strategy used when a product is new to the market and has unique or innovative features that differentiate it from competitors, allowing companies to charge a premium price. Therefore, for skimming pricing to be successful, it is necessary to maintain the price for a short period of time before competitors enter the market with similar products. Thus, there should be little chance that competitors can quickly enter the market.

Which of the Following Should Be True for a Skimming