A skimming pricing policy is likely to be most effective when
A)consumers tend to be price sensitive.
B)it will be easier to set measurable sales unit goals.
C)a lower price will significantly lower fixed costs.
D)consumers perceive your product to be similar to other products on the market.
E)lowering the price has only a minor effect on increasing sales volume and reducing unit costs.

Question

Quizplus · Accepted Answer

Skimming pricing policy involves initially setting a high price for a new product or service and gradually lowering it over time. This strategy is effective when lowering the price has only a minor effect on increasing sales volume and reducing unit costs. Therefore, option E is the most appropriate answer. The other options do not relate to the skimming pricing policy.

A Skimming Pricing Policy Is Likely to Be Most Effective