For a skimming price to be successful,________.

Question

Quizplus · Accepted Answer

Skimming prices are typically high prices that are set for a new product or innovation with the intention of making high profits from an early adopter market segment. To be successful, skimming prices must be set in a market where there is little chance that competitors can enter the market and undercut the high prices. This is because as competitors enter the market and offer similar products or alternatives, the demand for the skimming product decreases, which in turn reduces the chances of high profits. Therefore, option C is the best choice.

For a Skimming Price to Be Successful,________