Assertion: Skimming method can backfire if there are close competitors and they also introduce same products at lower price.
Reasoning: The consumers will think that the company always sells the products at higher prices which will result in consumers abandoning other products of the company also.
Reasoning: The consumers will think that the company always sells the products at higher prices which will result in consumers abandoning other products of the company also.
Answer & explanation
Correct answer: option 1
This method of Skimming can backfire if there are close competitors and they also introduce same products at lower price then consumers will think that the company always sells the products at higher prices which will result in consumers abandoning other products of the company also.