When Using a Skimming Price Strategy,small Business Owners Should Remember

question 143

Multiple Choice

When using a skimming price strategy,small business owners should remember that:

• A)it is difficult to correct pricing mistakes with this strategy.
• B)it is a long-term policy and it will take time to see appropriate results.
• C)if a price is set too low initially,it can be very hard to raise it later.
• D)it is an excellent strategy for discouraging competitors from entering the market.

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Definitions:

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense, often assessed in processes, systems, or organizations.

Top Executives Discretion

The authority and autonomy granted to high-level managers and executives to make decisions and take actions without needing approval from others.

Financial Reserves

Assets that are saved or conserved for future use, offering a buffer against financial challenges or emergencies.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of an organization.