Market skimming pricing makes sense under all the following conditions, EXCEPT ________.
A) if a sufficient number of buyers have a high current demand
B) if the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear
C) if the high initial price does not attract more competitors to the market
D) if consumers are likely to delay buying the product until its price drops
E) if the high price communicates the image of a superior product

Question

Quizplus · Accepted Answer

Market skimming pricing may not make sense if consumers are likely to delay buying the product until its price drops. In such cases, the initial high price may deter potential buyers who are waiting for the price to come down.

Market Skimming Pricing Makes Sense Under All the Following Conditions