A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and to ________.
A. discourage competition from other manufacturers
B. gain more distribution outlets
C. ease the product into its maturity stage
D. gain the largest unit sales possible
E. capitalize on the price insensitivity of early buyers
Answer: E
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__________ refers to the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.
Fill in the blank(s) with the appropriate word(s).
________ is an aspect of entrepreneurship that refers to doing the most work with the fewest resources.
A. Innovation B. Customer-focus C. Creation D. Efficiency
In the context of the origins of management, the emergence of the Hawthorne effect drove managers to strive for further growth.
Answer the following statement true (T) or false (F)
During market testing, Sensation Cosmetics (SC) realized that the cosmetics industry was dominated by multiple, well-established brands. These brands mostly sold their products in exclusive outlets and departmental stores. SC management realized that a new entrant would require a different business model to be successful. Thus, SC started selling its products through direct marketing. In this scenario, Sensation Cosmetics accomplished substitution primarily through
A. strategic equivalence. B. path dependence. C. technology transfer. D. knowledge diffusion.