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 stabilizing.
D) The producer should use intensive distribution.
E) There should be little chance that competitors can quickly enter the market.

Question

Quizplus · Accepted Answer

Skimming pricing strategy aims to target consumers who are willing to pay a high price for a new product in the market. In order for the strategy to be successful, it is important that there is little chance of competitors entering the market quickly as they may launch similar products at lower prices, leading to a decline in sales. Thus option E is the most suitable choice.

Which of the Following Should Be True for a Skimming