A market-skimming pricing strategy should NOT be used for a new product when ________.
A) the product's quality and image support its higher price
B) enough buyers want the products at that price
C) competitors are unable to enter the market
D) competitors can undercut prices easily
E) producing a smaller number of goods is feasible

Question

Quizplus · Accepted Answer

A market-skimming pricing strategy involves charging a high price initially to maximize profit before competitors enter the market. However, if competitors can easily undercut the price of the new product, it may not be wise to use this strategy. This is why option D is the correct answer.  The other options support the use of a market-skimming pricing strategy.

A Market-Skimming Pricing Strategy Should NOT Be Used for a New