Which one of the following conditions is not true in case of marketing skimming as the pricing objective?
Market-skimming pricing works only when early buyers are relatively price-insensitive (inelastic demand) and willing to pay a premium for the new product. If the market is…
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Which one of the following conditions is not true in case of marketing skimming as the pricing objective?
Answer and explanation
Correct answer A
Market-skimming pricing works only when early buyers are relatively price-insensitive (inelastic demand) and willing to pay a premium for the new product. If the market is highly price-sensitive, a high initial skimming price will choke off sales, making Penetration Pricing appropriate instead.
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UGC NET Commerce