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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