A skimming pricing policy is likely to be most effective when:
A)consumers perceive your product to be similar to other products on the market.
B)a lower price will have a major effect on reducing unit costs.
C)competitors will be attracted to the market due to the potential for high sales revenues.
D)consumers are willing to buy immediately.

Question

Quizplus · Accepted Answer

Skimming pricing strategy is most effective when consumers are willing to buy immediately. This is because the strategy involves initially setting a high price for a new product and then gradually lowering it over time. In such a scenario, consumers who value the product highly and want to be the first to own it will be willing to pay the higher price. As time goes by, more competitors may enter the market and drive the price down, making it less effective to use a skimming pricing strategy.

A Skimming Pricing Policy Is Likely to Be Most Effective