Of the Following Are True About a Skimming Pricing Strategy

question 397

Multiple Choice

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:

Personal Services

Services provided directly to individuals based on personal skill or expertise.

Unique Goods

Items that are distinct or unusual in some way, often making them irreplaceable or hard to replicate.

Specific Performance

A legal remedy in contracts where a court requires a party to perform their specific duties under the contract, rather than pay damages for not fulfilling the contract.

Personal Services

Services performed by an individual, often requiring specialized skills or knowledge, such as consulting, healthcare, or personalized instruction.