There Are Several Factors That Predict When a Skimming Pricing

question 90

Multiple Choice

There are several factors that predict when a skimming pricing policy is likely to be most effective, including situations in which

• A) consumers tend to be price-sensitive.
• B) enough prospective customers are willing to buy immediately at a high initial price to make these sales profitable.
• C) leadership is expecting to meet high sales unit goals.
• D) a lower price will significantly reduce unit costs.
• E) consumers perceive your product to be similar to other products in the market.

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Definitions:

Withdrawals

The act of taking money out of an account.

Tax Free

Refers to financial income or accounts that are not subject to taxation by the government, often used to encourage specific investments or savings.

Variable Annuity

A type of annuity plan that allows the contract owner to choose investments which then dictate the fluctuation of the payout amounts.

Life Expectancy

Life Expectancy is the statistical measure that reflects the average period a person is expected to live, based on demographic factors.