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) lowering the price has only a minor effect on increasing sales volume and reducing unit costs; (3) when the initial high prices do not attract competitors; and (4) __________.

A) consumers perceive your product to be similar to other products on the market
B) a lower price will significantly reduce unit costs
C) when customers interpret the high price as signifying high quality
D) consumers tend to be price sensitive
E) it will be easier to set measurable sales unit goals