Skimming Pricing Refers to

question 210

Multiple Choice

Skimming pricing refers to

• A)setting the lowest initial price possible when introducing a new or innovative product in order to "skim" sales from competitors.
• B)setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.
• C)setting a low initial price on a new product to appeal immediately to the mass market.
• D)the practice of replacing promotional allowances with higher manufacturer list prices.
• E)setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

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Definitions:

Landscaping

The process of making a yard or other piece of land more attractive by altering the existing design, adding ornamental features, and planting trees and shrubs.

Material Misrepresentation

A false statement or omission of fact that significantly affects a party's decision-making in a transaction.

Voidable

A legal term for a contract or transaction that, while valid, may be annulled or rescinded by one of the parties due to certain conditions such as fraud, duress, or mistake.

Mutual Assent

An agreement between two or more parties manifested by an offer and acceptance, which forms the basis of a contract.