All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle EXCEPT:
A) it capitalizes on the price insensitivity of early buyers.
B) its profit margins may be high.
C) it encourages "me too" entrants into the market.
D) it recovers the R&D costs of the new offering.
E) it helps build unit volume.
Correct Answer:
Verified
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