The Manufacturer of a DVD-R Is Thinking of Using a Skimming

question 163

Multiple Choice

The manufacturer of a DVD-R is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue against using a skimming pricing strategy for the DVD-R disks?

• A)large potential market, even at a high price
• B)technological problems still exist for competitors
• C)increasing volume reduces production costs substantially
• D)consumers perceive a price-quality relationship
• E)consumers are innovators

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