A skimming pricing policy is likely to be most effective when:
A)a lower price will have a major effect on reducing unit costs.
B)competitors will be attracted to the market due to the potential for high sales revenues.
C)consumers are willing to buy immediately.
D)consumers perceive your product to be similar to other products on the market.

Question

Quizplus · Accepted Answer

Skimming pricing policy is effective when consumers are willing to buy immediately as it allows the company to charge a high price during the initial launch phase to take advantage of early adopters or those with a high willingness to pay, and then gradually lower the price as the product becomes more mainstream.

A Skimming Pricing Policy Is Likely to Be Most Effective