A Manufacturer of a Portable Digital HD Camera Is Considering

question 26

Multiple Choice

A manufacturer of a portable digital HD camera is considering a skimming pricing strategy for its new product. Which of the following conditions would argue against using a skimming pricing strategy for the camera?

• A) There will be a large potential market, even if the product is sold at a high price.
• B) Technological problems still exist for competitors; their products are not equivalent.
• C) Increasing the volume sold reduces production costs substantially.
• D) Consumers perceive a strong price-quality relationship for this product.
• E) Many consumers in the target market are innovators.

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Definitions:

Longshore Current

A current that runs parallel to the shore, generated by waves hitting the shoreline at an angle.

Spit

A small point or low ridge of sand or gravel projecting from the shore into a body of water.

Wave-cut Platform

A flat, often wide area at the base of a cliff created by the erosion of waves at the shore.

Estuaries

Coastal bodies of water where fresh water from rivers meets and mixes with salt water from the ocean.