Which of the Following Is True of Skim Pricing

question 36

Multiple Choice

Which of the following is true of skim pricing?

• A)Skim pricing is most profitably used in the decline stage of the product life-cycle.
• B)Skim pricing is most useful to a business when there are many competitors in the market offering equivalent products.
• C)Skim pricing is most effective when product differentiation is diminishing,potential customers are price sensitive,and many competitors or substitutes exist.
• D)In skim pricing,a company tries to keep its costs as low as possible and to offer a low price that no competitor can beat.
• E)Skim pricing is viable when a business has a sustainable differentiation advantage in a quality-sensitive market with few competitors.

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Definitions:

Head Lice

Parasitic insects that live on the human scalp and feed on blood, causing itching and discomfort; commonly spread by close personal contact.

Pediculosis Capitis

A common infestation of the scalp by head lice, leading to itching and discomfort.

Lindane

A chemical insecticide used in prescription medications to treat lice and scabies, though its use is controversial due to potential toxicity.

Pediculosis

An infestation of lice on the human body, commonly affecting the head, body, or pubic area.