Asked by
Swastika Shiwakoti
on Dec 15, 2024
Verified
A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and to
A) capitalize on the price insensitivity of early buyers.
B) discourage competition from other manufacturers.
C) ease the product into its maturity stage.
D) gain the largest unit sales possible.
E) gain more distribution outlets.
Skimming Strategy
A pricing tactic that involves setting a high price for a new product to maximize profits from segments willing to pay more, before lowering the price over time.
Price Insensitivity
A condition where the demand for a product is unresponsive or less sensitive to changes in its price.
- Discern the strategic purposes behind varying pricing schemes, specifically skimming and penetration pricing, throughout the product life cycle phases.
Verified Answer
KH
Learning Objectives
- Discern the strategic purposes behind varying pricing schemes, specifically skimming and penetration pricing, throughout the product life cycle phases.
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