The strategy of market-skimming pricing is especially suited for new products because:
A) markets cannot be effectively segmented on an income basis.
B) price competition is typically most important in the introductory stage of the product life cycle.
C) high initial prices can keep demand from exceeding supply.
D) profits are more important than recouping costs.
E) all of the above are True.

Question

Quizplus · Accepted Answer

High initial prices can help manage demand levels to match supply, especially when a new product is introduced and the company might not be able to meet high demand due to limited production capacity or desire to maintain exclusivity.

The Strategy of Market-Skimming Pricing Is Especially Suited for New