All the following are conditions that lend themselves to a skimming pricing strategy except:

All the following are conditions that lend themselves to a skimming pricing strategy except:




• The market is relatively elastic
• Competition is blocked from market entry
• There is not a appreciable economy of scale at higher production
• The market is relatively inelastic
• You have a sustained market advantage



Answer: The market is relatively elastic

One of the possible strategic purposes of pricing is

One of the possible strategic purposes of pricing is



• Reducing inventory
• Appeasing a particular disgruntled customer
• Matching a competitor in a small, secondary market
• Winning one particular new account
• Creating a barrier to entry for potential competitors



Answer: Creating a barrier to entry for potential competitors.