Skimming Pricing Policy Is Likely to Be Most Effective When

Multiple Choice

skimming pricing policy is likely to be most effective when: (1) enough customers are willing to buy immediately at the high initial price; (2) when the high initial price does not attract competitors; (3) customers interpret high price as signifying high quality; and (4) __________.

A) consumers tend to be price sensitive
B) lowering the price has only a minor effect on increasing sales volume and reducing unit costs
C) a lower price will significantly reduce unit costs
D) it will be easier to set measurable sales unit goals
E) consumers perceive the product to be similar to other products on the market