Apple has successfully introduced several new products utilizing a skimming approach where it charges the highest possible price during the introduction stage of the product life cycle. Which of the following is NOT one of the benefits of a skimming strategy?
a. helps keep demand consistent with production capabilities
b. creates cash flow to offset the development costs associated with product creation
c. may achieve lower levels of sales but still recoup developmental costs
d. protects the marketer from problems that arise when prices are set too low to cover costs
Answer: c. may achieve lower levels of sales but still recoup developmental costs