A Skimming Pricing Policy Is Likely to Be Most Effective

question 233

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) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost;and (4) __________.

• 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)customers interpret the high price as signifying high quality
• 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:

Coracoid Process

A small hook-like structure on the scapula (shoulder blade), serving as an attachment point for several arm and chest muscles.

Lesser Trochanter

A bony prominence on the femur near its joint with the hip bone, serving as a point of attachment for several muscles of the lower limb.

Lateral Malleolus

The bony prominence on the outer side of the ankle, forming the lower end of the fibula.