CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEnterprise Marketing3 Marks
Question
Explain the disadvantages of skimming price method.
✓
Answer
The disadvantages of skimming price method are as follows:
This method will lose its relevance if competitors also lower their price.
If the customers perceive that it is the policy of the business to premiumly price its products, then the business will lose customers of other segments also.
This pricing strategy cannot be implemented if there are strict and legal government regulations regarding consumer rights.
This strategy can backfire if customers decide to wait till prices are lowered.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.