Question


A manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?
A. large potential market, even at a high price
B. technological problems still exist for competitors
C. increasing volume reduces production costs substantially
D. consumers perceive a price-quality relationship
E. consumers are innovators

Answer

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