Assertion: If the company has history of price skimming then consumers will never buy a product when it is newly launched.
Reasoning: Price skimming is not a viable option when there are strict legal and government regulations regarding consumer rights.
Reasoning: Price skimming is not a viable option when there are strict legal and government regulations regarding consumer rights.
Answer & explanation
Correct answer: option 2
Price skimming is not a viable option when there are strict legal and government regulations regarding consumer rights.
If the company has history of price skimming then consumers will never buy a product when it is newly launched, they would rather wait for a few months and buy the product at lower price.
If the company has history of price skimming then consumers will never buy a product when it is newly launched, they would rather wait for a few months and buy the product at lower price.