The manufacturer of a Blu-Ray-R, a recordable Blu-Ray disk that can be erased and reused, 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 Blu-Ray disks?

The manufacturer of a Blu-Ray-R, a recordable Blu-Ray disk that can be erased and reused, 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 Blu-Ray disks?



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



Answer: C


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