Identify the INCORRECT statement about a skimming strategy
A) It targets customers that are least price sensitive
B) It is useful when the cost structure of the product is largely variable
C) It assumes a product feature-based differential advantage
D) It allows a company to enter the market with a high price
E) It uses a low-price core strategy

Question

Quizplus · Accepted Answer

A skimming strategy involves setting high prices initially to target customers who are less price sensitive and willing to pay more for new or innovative products. It does not use a low-price core strategy; that would be more characteristic of a penetration pricing strategy.

Identify the INCORRECT Statement About a Skimming Strategy