A Skimming Pricing Policy Is Likely to Be Most Effective

A skimming pricing policy is likely to be 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) __________.

A) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable
B) consumers tend to be price-sensitive
C) customers interpret the high price as signifying high quality
D) lowering the price has a major effect on increasing the sales volume
E) consumers perceive your product to be similar to other products on the market