The manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream 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 tasty fat-free ice cream?
A.
The ice cream market is highly conservative.
B.
A large portion of the market has inelastic demand for ice cream - over a fairly broad range of prices.
C.
Economies of scale in production are substantial.
D.
Retailers are willing to pay for new brands of premium ice cream in an overcrowded category.
Answer: B
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Marketing
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