Which of the following is true of price skimming?
A) It is effective in situations in which competitors are able to undercut prices easily.
B) It can be profitably used when the product's quality and image support its price.
C) It involves underpricing products so that companies make larger sales.
D) It is ineffective in situations in which competitors are unable to enter the market easily.
E) It leads to a situation in which the company completes more, though less profitable, sales.
B
You might also like to view...
People differ in their ability to adapt to culturally diverse situations, described as cultural ________ (CQ), which captures cognitive, motivational, and behavioral tendencies that play out in intercultural interactions.
Fill in the blank(s) with the appropriate word(s).
Katrina’s organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers. Adopting a(n) ________ organizational philosophy on compensation could allow her to hire plenty of workers.
A. wage compression B. below-the-market C. pay for longevity D. competency-based pay E. profit pay
You can learn to manage your emotions through rehearsal
Indicate whether the statement is true or false.
Newman Co provides training and technical support to its suppliers in order to increase the quality of purchased raw materials. Which type of quality cost would this most likely be?
A) External failure cost B) Prevention cost C) Internal failure cost D) Appraisal (detection) cost