All of the Following Are True About a Skimming Pricing

question 286

Multiple Choice

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except

• A)it capitalizes on the price insensitivity of early buyers.
• B)its profit margins may be high.
• C)it encourages "me too" entrants into the market.
• D)it recovers the R&D costs of the new offering.
• E)it helps build unit volume.

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Definitions:

Therapeutic Response

The reaction or outcome following treatment or therapy, indicating the effectiveness of the intervention.

Sins

Actions or behaviors considered to be morally wrong or against religious or moral laws.

Listening

The active process of receiving and responding to spoken (and sometimes unspoken) messages.

Restating

The act of repeating or paraphrasing what someone else has said to ensure understanding or to provide clarity.