Assertion: Skimming strategy is employed only for a limited duration to recover most of the investment made to build the product.
Reasoning: Skimming strategy works for customers who are both quality and quantity conscious.
Reasoning: Skimming strategy works for customers who are both quality and quantity conscious.
Answer & explanation
Correct answer: option 3
Skimming strategy is employed only for a limited duration to recover most of the investment made to build the product. To gain further market share, a seller must use other pricing tactics such as economy or penetration. This method can have some setbacks as it could leave the product at a high price against the competition.
If the company caters to consumers who are quality conscious rather than price conscious, then this type of skimming strategy can work in a great way for a company.
If the company caters to consumers who are quality conscious rather than price conscious, then this type of skimming strategy can work in a great way for a company.