For which of the following new products would the manufacturer be most likely to use a market-skimming strategy?
A) low-fat condensed milk
B) a portable x-ray machine
C) a sugar-free jelly
D) mildew-free shower curtains
E) an insect spray that is safe to use around children and pets

Question

Quizplus · Accepted Answer

A market-skimming strategy involves setting high initial prices to "skim" revenue layers from the market. It is most suitable for products with unique advantages or innovations, which customers are willing to pay a premium for, such as a portable x-ray machine. This product likely has less price sensitivity initially due to its innovative nature and specific target market, making it ideal for a skimming strategy.

For Which of the Following New Products Would the Manufacturer