A skimming pricing policy is likely to be most effective when
A)consumers perceive your product to be similar to other products on the market.
B)a lower price will significantly lower fixed costs.
C)customers interpret high price as signifying high quality.
D)consumers tend to be price sensitive.
E)it will be easier to set measurable sales unit goals.

Question

Quizplus · Accepted Answer

Skimming pricing policy is effective when customers interpret high price as signifying high quality. This is because skimming involves setting a high price initially and then gradually lowering it over time as the product becomes widely accepted. If customers perceive the product to be of high quality, they are more likely to be willing to pay a higher price for it.

A Skimming Pricing Policy Is Likely to Be Most Effective