Skimming Pricing Policy Is Likely to Be Most Effective When

question 195

Multiple Choice

skimming pricing policy is likely to be most effective when: (1) lowering the price has only a minor effect on increasing sales volume and reducing unit costs; (2) when the high initial price does not attract competitors; (3) customers interpret high price as signifying high quality; and (4) __________.

• A) enough customers are willing to buy immediately at the high initial price
• B) consumers tend to be price sensitive
• C) it will be easier to set measurable sales unit goals
• D) a lower price will significantly reduce unit costs
• E) consumers perceive your product to be similar to other products on the market