A Skimming Pricing Policy Is Likely to Be Most Effective

question 110

Multiple Choice

A skimming pricing policy is likely to be most effective when

• A)consumers perceive one product to be similar to other products on the market.
• B)a lower price will significantly lower fixed costs.
• C)competitors will be attracted to the market due to the potential for high sales revenues.
• D)consumers tend to be price-sensitive.
• E)the high initial price will not attract competitors.

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Definitions:

Oedipal Complex

According to Sigmund Freud, a condition that occurs during the phallic stage, when boys are presumed to develop sexual desires for their mother and see their father as a competitor for their mother’s love. The term is a reference to the character of Oedipus in the play by the Greek tragedian Sophocles.

First Year of Life

A critical period in human development marked by rapid physical and cognitive growth, along with significant emotional and psychological changes.

Anal Stage

The second stage in Freud's psychosexual development theory, occurring between 18 months and three years, where the child's libido is focused on the anus, and toilet training is a key experience.