Which of the following should be true for a skimming price to be successful?
A) Target consumers should be price sensitive.
B) Supply should exceed demand.
C) Demand must be stable.
D) The producer should use intensive distribution.
E) The product has clear, meaningful advantages over alternatives in the market.

Question

Quizplus · Accepted Answer

Skimming pricing strategy is successful only if the product has clear, meaningful advantages over competitors in the market. This will justify the higher initial price charged and also create a favorable perception of the product's quality and value. The other options are not necessarily true for success with a skimming price. Target consumers may or may not be price sensitive, supply and demand can have different impacts on pricing decisions, and distribution strategy may not matter for setting the initial price. Stability of demand is also not a requirement for skimming pricing to be successful.

Which of the Following Should Be True for a Skimming