skimming pricing policy is likely to be most effective when: (1)enough customers are willing to buy immediately at the high initial price; (2)when the high initial price does not attract competitors; (3)customers interpret high price as signifying high quality; and (4)__________.

Question

Quizplus · Accepted Answer

Skimming pricing policy is a strategy where a product is initially introduced in the market at a high price, and later the price is gradually decreased. This policy is effective when lowering the price does not have a significant impact on increasing sales volume and reducing unit costs. In this case, the company can maximize profits by selling the product at a high price at the beginning of its life cycle, before competitors enter the market, and before the product becomes a commodity. Therefore, option B is the best choice.

Skimming Pricing Policy Is Likely to Be Most Effective When