For a price skimming strategy to work,the product or service must
A) be bundled with products or services already available on the market.
B) be similar to what consumers are already comfortable with.
C) have wide market appeal.
D) have low production costs.
E) offer consumers some new benefit currently unavailable.

Question

Quizplus · Accepted Answer

A price skimming strategy requires a product or service to offer consumers some new benefit currently unavailable. This new benefit justifies the high initial price, and over time, the price can be lowered as the product becomes more common in the market. Wide market appeal is not essential for a price skimming strategy, as it is targeted at a select group of customers who are willing to pay a premium for the unique benefit provided by the product or service. The product or service may have high production costs due to its unique features, but this does not necessarily prevent a price skimming strategy from being effective.

For a Price Skimming Strategy to Work,the Product or Service