Askimming pricing policy is likely to be most effective when: (1) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable; (2) ; (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost; and (4) customers interpret the high price as signifying high quality.

The correct answer would be, high initial price will not attract competitors.

One of the points in Skimming Pricing strategy is the above mentioned statement.

Explanation:

When a marketer sets the price of a product or service too high initially, and lowers the product price after some time, then this pricing strategy of the marketer is called as the Skimming pricing Strategy.

Skimming pricing strategy has the following characteristics:

The above mentioned characteristics are true for skimming strategy where the initial price of the product is high.

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