For a price skimming strategy to work,the product or service must
A) be bundled with products or services already available on the market.
B) be similar to what consumers are already comfortable with.
C) have wide market appeal.
D) have low production costs.
E) offer consumers some new benefit currently unavailable in alternative products.

Question

Quizplus · Accepted Answer

A price skimming strategy involves charging a high price initially for a new product with unique features or benefits that are not currently available in alternative products. This strategy is effective when the product has wide market appeal and the consumers are willing to pay a premium price for the benefits offered. Therefore, choice E is the correct answer as it best satisfies the conditions required for a price skimming strategy to work.

For a Price Skimming Strategy to Work,the Product or Service