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 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

A successful market-skimming pricing strategy requires the product's quality and image to support its high price. This is because customers need to perceive the product as valuable and worth paying a premium price for. Lower-priced alternatives should not be able to enter the market easily as that would undermine the skimming strategy, and low prices may not necessarily promote market growth for a premium product. The price should not necessarily match the manufacturing cost, as it should be based on the perceived value of the product. Maintaining a low-price position is counterintuitive to a market-skimming pricing strategy.

Which of the Following Conditions Is Most Likely Essential for Implementing