Which one of the following situations best demonstrates an advantage of price skimming?
A) The low initial prices create an image of value for the customer.
B) Prices are initially low to encourage customers to purchase the product.
C) When the price is eventually lowered, consumers might think they are getting a bargain.
D) It discourages competitors from entering the market.

Question

Quizplus · Accepted Answer

Price skimming involves setting high initial prices and then gradually lowering them. When prices are eventually reduced, consumers may perceive they are getting a bargain, which can stimulate sales.

Which One of the Following Situations Best Demonstrates an Advantage