All of the Following Are True About a Skimming Pricing

Multiple Choice

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except which?

A) It capitalizes on the price insensitivity of early buyers.
B) It typically results in high profit margins.
C) It encourages competitive entrants into the market.
D) It recovers the R&D costs of the new offering.
E) It helps build unit volume.