With a price skimming strategy,a marketer will NOT benefit from
A) increased consumer value associated with price increases.
B) the ability to use seasonal discounts.
C) the opportunity to offer advertising allowances.
D) economies of scale associated with a larger volume of production.
E) market substitution price elasticity.

Question

Quizplus · Accepted Answer

Price skimming typically involves setting a high initial price for a new product or service, which is then gradually lowered over time. This strategy can be effective for generating high profits early on, but it may not be optimized for achieving economies of scale associated with larger production volumes. Therefore, the marketer may not benefit from producing more units at a lower cost, which is typically required for long-term profitability.

With a Price Skimming Strategy,a Marketer Will NOT Benefit from