A Manufacturer of a Digital Video Recorder (DVR)is Thinking of Using

question 101

Multiple Choice

A manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product.Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

• A)large potential market,even at a high price
• B)technological problems still exist for competitors
• C)increasing volume reduces production costs substantially
• D)consumers perceive a price-quality relationship
• E)consumers are innovators

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Definitions:

Dissenting Shareholders

Shareholders who do not agree with certain corporate actions, such as mergers or acquisitions, and may have rights to receive payment for their shares.

Dissolution

The process of formally dissolving a legal entity, such as a corporation or partnership, and ceasing its operations.

Outstanding Debts

Financial obligations or amounts owed by a person or entity that are yet to be paid.

Creditors

Individuals, companies, or institutions to whom money is owed by debtors for goods or services that have been provided but not yet paid for.