A market skimming strategy can be used in conjunction with _____.
A)administered pricing
B)market pricing
C)price wars
D)elastic demand

Question

Quizplus · Accepted Answer

A market skimming strategy involves setting a high price for a new product when it is first launched in the market to attract early adopters who are willing to pay a premium price. Administered pricing is a method of setting prices where the prices are set by the organization and not influenced by market conditions. Therefore a market skimming strategy can be used in conjunction with administered pricing. Market pricing is a pricing strategy that sets prices based on market conditions, so it is not suitable for a market skimming strategy. Price wars involve setting low prices to compete with rivals, which goes against the principles of a market skimming strategy. Elastic demand refers to a situation where a change in price leads to a significant change in demand, which is not related to the use of a market skimming strategy.

A Market Skimming Strategy Can Be Used in Conjunction with _____