A skimming pricing policy is likely to be most effective when
A) consumers perceive the company's product to be similar to others on the market.
B) a lower price will significantly lower fixed costs.
C) the company's product is easily and quickly duplicated.
D) consumers tend to be price-sensitive.
E) the high initial price will not attract competitors.

Question

Quizplus · Accepted Answer

A skimming pricing policy is effective when the high initial price does not attract competitors, allowing the company to maximize profits from early adopters before lowering prices.

A Skimming Pricing Policy Is Likely to Be Most Effective