Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the skimming price strategy.

Question

Quizplus · Accepted Answer

Gourmet Pets is aiming for perceived quality and is the first to market, which allows them to charge a premium price. These are characteristics of a skimming pricing strategy, so the statement is true.

Gourmet Pets Feels Its Target Market Is More Concerned with Perceived