- 1 Marks
Question
The aim of market skimming is to ………………………..
A. Build customer demand
B. Offer an attractive price
C. Increase sales volume
D. Maximise the gross profit per unit sold
E. Penetrate the market
Answer
D. Maximise the gross profit per unit sold
Explanation:
Market skimming is a pricing strategy where a company sets a high price initially to maximize profits per unit sold, especially for new and innovative products. This approach is often used when there is little competition, and customers are willing to pay more for early access. The price is typically lowered later as more competitors enter the market or demand from high-paying customers decreases, making option D the correct answer.
- Tags: Market Skimming, Pricing Strategy, Sales Strategy
- Level: Level 1
- Topic: Basic Management Functions
- Series: MAY 2016
- Uploader: Kwame Aikins