As Chief Marketing Officer for a pharmaceutical company,you've chosen to use a skimming pricing strategy when introducing the firm's breakthrough pain medication.Nervous about charging high prices during an economic downturn,the CEO wants you to explain your choice to the board of directors.What should you say?
A) Skimming pricing strategy is generally more successful than market-plus pricing strategy.
B) If other drug companies introduce competitive products,your initial high price will be dropped.
C) Skimming allows the firm to quickly recoup its research and development costs.
D) Skimming allows the firm to control demand during the medication's introductory stages.
E) Skimming discourages competition.
Correct Answer:
Verified
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