A "skimming pricing policy":
A) should be used if a firm expects strong competition very soon.
B) is most useful when demand is very elastic.
C) is typically used during the sales decline stage of the product life cycle.
D) usually involves a slow reduction in price over time.
E) means temporary price cuts to speed new products into a market.

Question

Quizplus · Accepted Answer

A skimming pricing policy involves setting high initial prices and then gradually lowering them over time. This approach is often used to maximize profits from different segments of the market, starting with those willing to pay more and then adjusting to attract more price-sensitive customers.

A "Skimming Pricing Policy