A Skimming Pricing Policy Is Likely to Be Most Effective

question 130

Multiple Choice

A skimming pricing policy is likely to be most effective when

• A) consumers perceive the company's product to be similar to others on the market.
• B) a lower price will significantly lower fixed costs.
• C) the company's product is easily and quickly duplicated.
• D) consumers tend to be price-sensitive.
• E) the high initial price will not attract competitors.

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Definitions:

Legal Equality

The principle that all individuals must be treated equally by the law, without any discrimination.

Assimilate

The process by which individuals or groups absorb and integrate the cultural traditions, language, or behaviors of another group or society.

Tenskwatawa

A Native American religious and political leader of the Shawnee tribe, known as the Prophet, who advocated for a return to traditional ways and resistance against European-American expansion in the early 19th century.

Neolin

A Native American religious prophet who, by preaching pan-Indian unity and rejection of European technology and commerce, helped inspire Pontiac’s Rebellion.