A Skimming Pricing Policy Is Likely to Be Most Effective

question 110

Multiple Choice

A skimming pricing policy is likely to be most effective when

• A)consumers perceive one product to be similar to other products on the market.
• B)a lower price will significantly lower fixed costs.
• C)competitors will be attracted to the market due to the potential for high sales revenues.
• D)consumers tend to be price-sensitive.
• E)the high initial price will not attract competitors.

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