The price skimming strategy is sometimes called a "market-plus" approach to pricing because it denotes a high price relative to the prices of competing products.This strategy works best when:
A) competition is abundant.
B) revenues are equal to expenses.
C) supply is greater than demand.
D) production capacity is large and flexible.
E) The product is perceived as having unique advantages.

Question

Quizplus · Accepted Answer

Companies often use this strategy for new products when the product is perceived by the target market as having unique advantages.

The Price Skimming Strategy Is Sometimes Called a "Market-Plus" Approach