A Skimming Pricing Policy

question 276

Multiple Choice

A skimming pricing policy

• A)should be used if a firm expects strong competition very soon.
• B)is most useful when demand is very elastic.
• C)is typically used during the sales decline stage of the product life cycle.
• D)often involves a slow reduction in price over time.
• E)means temporary price cuts to speed new products into a market.

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Definitions:

PEO

A Professional Employer Organization, which is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers' compensation, recruiting, risk/safety management, and training and development.

Employment Costs

The total expenses borne by employers to hire and sustain employees, including wages, benefits, training, and other related expenses.

Rapidly Drained

Describes a situation or process where resources or energy are depleted at an accelerated rate.

Organizational Concern

Involves issues or challenges faced by an organization that can affect its operational efficiency and overall success.