A Skimming Pricing Policy Is Likely to Be Most Effective

A skimming pricing policy is likely to be most effective when: (1) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable; (2) the high initial price will not attract competitors; (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost;and (4) __________.

A) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable
B) consumers tend to be price sensitive
C) customers interpret the high price as signifying high quality
D) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost
E) consumers perceive your product to be similar to other products on the market