The Manufacturer of a Blu-Ray-R, a Recordable Blu-Ray Disk That

question 24

Multiple Choice

The manufacturer of a Blu-Ray-R, a recordable Blu-Ray disk that can be erased and reused, is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue AGAINST using a skimming pricing strategy for the Blu-Ray disks?

• A)consumers perceive a price-quality relationship
• B)large potential market, even at a high price
• C)technological problems still exist for competitors
• D)increasing volume reduces production costs substantially

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Definitions:

High Industry Growth

Refers to the rapid expansion of economic activity within a particular industry, typically measured by revenue, output, or sales increases.

Concentration of Buyers

Refers to a market situation where a small number of buyers control a large share of the market, potentially affecting pricing and competition.

Undifferentiated Products

Goods or services that are perceived as interchangeable with others in the market, lacking distinct features.

Competitive Forces

The external factors that affect a company's capability to compete in a market, including competitors, new entrants, substitute products, bargaining power of buyers, and suppliers.