Market-skimming pricing would likely be most effective in selling ________.
A)any convenience item
B)an electronic device for which research and development must be recouped
C)shampoo and bath soap
D)anything easily copied by competitors
E)most items at EDLP retailers such as Big W,Target and K-Mart

Question

Quizplus · Accepted Answer

Market-skimming pricing is a pricing strategy in which a high price is set for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price. This strategy is most effective in selling an electronic device for which research and development must be recouped because these products typically have high development costs that need to be recovered, and also because they appeal to early adopter segments who are usually willing to pay a premium price for new and innovative products.

Market-Skimming Pricing Would Likely Be Most Effective in Selling ________