Which of the Following Is a Major Disadvantage Associated with the Skimming

question 201

Multiple Choice

Which of the following is a major disadvantage associated with the skimming pricing strategy?

• A)It is not effective for higher-end goods.
• B)It is not effective in recovering the high research and development costs.
• C)It attracts competition as potential competitors enter into the market observing the high financial returns obtained by innovative firms.
• D)It leads to fulfillment problems if the demand for the product outstrips the firm's production capacity.

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Definitions:

Emotional Maturity

The ability to understand, manage, and express one’s emotions effectively.

Interpersonal Skills

Abilities used by a person to interact effectively with others.

Empathy

The ability to understand and share the feelings of another.

Tact

A keen sense of what to say or do to maintain good relations with others or avoid offense.