All of the Following Are True About a Skimming Pricing

question 284

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 competitive 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:

Phineas Gage

A famous case study in the field of neuroscience and psychology involving a railroad worker who survived a severe brain injury in the 19th century, significantly altering his personality.

Brain Injury

Damage to the brain that can result from traumatic impacts, diseases, or disorders, affecting cognitive and physical functioning.

Construal Level Theory

The theory that people focus more on concrete details when thinking about the near future and focus more on abstract meaning when thinking about the distant future.

Distant Future

A point in time that is far ahead from the present moment, often encompassing years or generations ahead.