Which one of the following conditions is not true in case of marketing skimming as the pricing objective?

Correct option is A

Price skimming involves setting high initial prices to maximize profits from customers willing to pay more before gradually lowering prices. This strategy is effective when the market is not highly price-sensitive. If the market is price-sensitive, customers will avoid purchasing expensive products, making skimming ineffective.
Information Booster:
1. Price skimming works best when demand is inelastic, meaning customers are willing to pay higher prices.
2. It is commonly used in technology and luxury products (e.g., smartphones, designer brands).
3. Early adopters help companies recover research and development (R&D) costs.
4. Gradual price reductions help attract mass-market consumers over time.
5. Price skimming can prevent rapid saturation of the market.
6. Examples of companies using price skimming include Apple (iPhones) and Sony (PlayStation consoles).
Additional Knowledge:
· Market penetration pricing is the opposite strategy, where prices are initially set low to gain market share.
· Psychological pricing involves setting prices based on consumer perception (e.g., ₹999 instead of ₹1000).
· Dynamic pricing adjusts prices based on demand, competition, or consumer behavior.