Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?
A) The product's quality and image must support its high price.
B) Lower-priced alternatives can enter the market easily.
C) Low prices promote more market growth than high prices.
D) The product's price matches its manufacturing costs.
E) A low-price position of the product is maintained.

Question

Quizplus · Accepted Answer

For a market-skimming pricing strategy to be successful, the product's quality and image must support its high price. This is because customers are willing to pay a premium price for a product if they perceive its quality and image to be high. Lower-priced alternatives entering the market easily and low prices promoting market growth are conditions that favor a market-penetration pricing strategy. The product's price matching its manufacturing costs is a condition for cost-plus pricing, while maintaining a low-price position is a condition for a low-price strategy.

Which of the Following Conditions Is Most Likely Essential for Implementing