An organization should use a market-skimming strategy for a new product if:
A) competitors have free access to the product's raw materials.
B) demand for the product is very elastic.
C) the product is not unique enough to be patented.
D) the new product is distinctive.
E) all of the above are True.

Question

Quizplus · Accepted Answer

A market-skimming strategy involves setting high prices initially to "skim" revenue layers from the market. It is most effective when the new product is distinctive, allowing the company to capitalize on its uniqueness and lack of direct competition. Choices A, B, and C describe conditions that typically do not support a skimming strategy.

An Organization Should Use a Market-Skimming Strategy for a New