In the Context of Prestige Pricing, Skimming Works Only When

question 137

Multiple Choice

In the context of prestige pricing, skimming works only when:

• A) retail stores are ready to increase traffic by special sales on a limited number of products.
• B) the aim is to achieve long-term profitability through sheer volume of sales.
• C) newly launched products are offered at rock-bottom prices.
• D) a product is tough to copy in terms of design, brand image, technology, or some other attribute.

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Definitions:

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Emerging Economies

Countries with developing industrial bases, experiencing rapid economic growth and increasing involvement in the global market.

NICs

Stands for Newly Industrialized Countries, which are nations experiencing rapid economic growth and industrialization.

LDCs

Least Developed Countries (LDCs) are low-income countries confronting severe structural impediments to sustainable development, often characterized by weak socioeconomic indicators.