The big advantage of price skimming is that it typically discourages or blocks competition from entering a market.
Answer the following statement true (T) or false (F)
False
Price skimming is sometimes called a “market-plus” approach to pricing because it denotes a high price relative to the prices of competing products. The term price skimming is derived from the phrase “skimming the cream off the top.” Companies often use this strategy for new products when the product is perceived by the target market as having unique advantages. Often companies will use skimming and then lower prices over time. This is called “sliding down the demand curve.” Price skimming works best when there is strong demand for a good or service. Apple, for example, uses skimming when it brings out a new iPhone or Watch. As new models are unveiled, prices on older versions are normally lowered. Firms can also effectively use price skimming when a product is well protected legally, when it represents a technological breakthrough, or when it has in some other way blocked the entry of competitors. Managers may follow a skimming strategy when production cannot be expanded rapidly because of technological difficulties, shortages, or constraints imposed by the skill and time required to produce a product. See 19-7c: Choose a Price Strategy.
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One of the weaknesses of using surveys to estimate the demand curve is that consumers exaggerate their willingness to pay for new products and services
Indicate whether the statement is true or false
The management decision problem is action oriented
Indicate whether the statement is true or false
One way of reducing project costs is identifying tasks that ________ can do themselves.
Fill in the blank(s) with the appropriate word(s).
You want to observe how often consumers listen to music throughout their day and what different audio devices they use. You are also interested in how consumers store and access their own music collections. You should conduct ________ research
A) causal B) experimental C) secondary D) pure E) exploratory