Market skimming makes sense when the 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 new product initially and then gradually lowering it as competitors enter the market. This strategy works well when the product has a unique and desirable quality or image that justifies its higher price, and there is sufficient demand from buyers who are willing to pay that price.

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