All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except which?

Question

Quizplus · Accepted Answer

A high initial price in the introduction stage may be used as part of a skimming strategy to help the company recover the costs of development as well as to capitalize on the price insensitivity of early buyers.High prices tend to attract competitors eager to enter the market because they see the opportunity for profit.

All of the Following Are True About a Skimming Pricing