A manufacturer of a portable digital HD camera is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue against using a skimming pricing strategy for the camera?
A) There will be a large potential market, even if the product is sold at a high price.
B) Technological problems still exist for competitors; their products are not equivalent.
C) Increasing the volume sold reduces production costs substantially.
D) Consumers perceive a strong price-quality relationship for this product.
E) Many consumers in the target market are innovators.
Correct Answer:
Verified
Q15: The key to setting a final price
Q16: Q17: To accommodate the changes in the book Q18: A skimming pricing policy is likely to Q19: Skimming pricing is a strategy that introduces Q21: Prestige pricing refers to Q22: A penetration pricing policy is most likely Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
A) charging different prices