Which of the following is NOT an advantage of skimming pricing?
A) It allows a manufacturer to quickly recover its research and development costs.
B) It allows marketers to control demand at certain points in the introductory stages of a product's life cycle.
C) Potential competitors see innovative firms reaping large financial returns and decide to enter the market.
D) It is a useful tool for setting a market entry price when there is little or no competition.

Question

Quizplus · Accepted Answer

Skimming pricing is a strategy where a high initial price is set for a new product, primarily to recover R&D costs quickly and target early adopters. The disadvantage mentioned in option C is that high profits can attract competitors, which is not an advantage but a potential drawback of this pricing strategy.

Which of the Following Is NOT an Advantage of Skimming