Skimming Pricing Policy Is Likely to Be Most Effective When

Multiple Choice

skimming pricing policy is likely to be most effective when: (1) lowering the price has only a minor effect on increasing sales volume and reducing unit costs; (2) when the high initial price does not attract competitors; (3) customers interpret high price as signifying high quality; and (4) __________.

A) enough customers are willing to buy immediately at the high initial price
B) consumers tend to be price sensitive
C) it will be easier to set measurable sales unit goals
D) a lower price will significantly reduce unit costs
E) consumers perceive your product to be similar to other products on the market