A Market-Skimming Pricing Strategy Should NOT Be Used for a New

question 151

Multiple Choice

A market-skimming pricing strategy should NOT be used for a new product when ________.

• A) the product's quality and image support its higher price
• B) enough buyers want the products at that price
• C) competitors are unable to enter the market
• D) competitors can undercut prices easily
• E) producing a smaller number of goods is feasible

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Definitions:

Performance

The execution of an action or task in consideration of its efficiency, effectiveness, and quality.

Net Profits

The amount of money left after all expenses, taxes, and costs have been subtracted from total revenue.

Focal Leader

A primary leader who is the central point of guidance and decision-making within a group or organization.

Formal Authority

Official power given to an individual or group by an organization's rules or hierarchy to make decisions and direct others.