A Skimming Pricing Policy Is Likely to Be Most Effective

question 379

Multiple Choice

A skimming pricing policy is likely to be most effective when

• A)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
• B)consumers tend to be price sensitive.
• C)it will be easier to set measurable sales unit goals.
• D)a lower price will significantly lower fixed costs.
• E)consumers perceive your product to be similar to other products on the market.

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Definitions:

Information

Data or knowledge communicated or received about a particular fact or circumstance; information can be obtained from various sources and is essential for decision-making.

Attitudes

A settled way of thinking or feeling about something, typically reflected in a person's behavior or actions.

Influences

Forces or factors that have an effect on the actions, behavior, opinions, or development of someone or something.

Mere Exposure Effect

An effect that occurs when people hold a positive attitude toward a stimulus simply because they have been exposed to it repeatedly.