There are several factors that predict when a skimming pricing policy is likely to be most effective,including situations in which
A)consumers tend to be price-sensitive.
B)enough prospective customers are willing to buy immediately at a high initial price to make these sales profitable.
C)it will be easier to set measurable sales unit goals.
D)a lower price will significantly reduce unit costs.
E)consumers perceive your product to be similar to other products in the market.

Question

Quizplus · Accepted Answer

A skimming pricing strategy,which entails setting a high initial price,is most effective when (1)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable,(2)the high initial price will not attract competitors,(3)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost,and (4)customers interpret the high price as signifying high quality.

There Are Several Factors That Predict When a Skimming Pricing