A Manufacturer of a Digital Video Recorder (DVR) Is Thinking

Multiple Choice

A manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue against using a skimming pricing strategy for the DVR?

A) large potential market, even at a high price
B) technological problems still exist for competitors
C) increasing volume reduces production costs substantially
D) consumers perceive a price-quality relationship
E) consumers are innovators