A Skimming Pricing Policy Is Likely to Be Most Effective

question 223

Multiple Choice

A skimming pricing policy is likely to be most effective when (1) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable; (2) the high initial price will not attract competitors; (3) __________; and (4) customers interpret the high price as signifying high quality.

• A)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable
• B)consumers tend to be price-sensitive
• C)it will be easier to set measurable sales unit goals
• D)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost
• E)consumers perceive your product to be similar to other products on the market

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Definitions:

Long-Term Metrics

Key performance indicators or measurements that track progress towards goals set for a future horizon, emphasizing sustainability and long-term value creation.

Generating Profits

The process by which a business generates a financial gain, typically through the sale of goods or services more than the cost of production.

Performance-Improving Innovations

Performance-improving innovations refer to new or significantly improved products, services, processes, or methods that directly contribute to enhancing efficiency, productivity, or performance levels within an organization.

Enhanced User-Interfaces

Improvements and advancements in the design and functionality of user interfaces to make them more intuitive, accessible, and user-friendly.