CIPS Exam A6 Topic 3 Question 71 Discussion

Actual exam question for CIPS's A6 exam

Question #: 71
Topic #: 3

[All A6 Questions]

Which of the following best describes the pricing policy known as 'skimming'?

AA low price set to gain acceptance of a new product

BReducing prices to increase sales and distribution

CA high price aimed at a quick recovery of costs

DA price set in line with that charged by competitors.

Show Suggested Answer

Suggested Answer: A

by Katlyn at Feb 10, 2025, 09:06 PM

Limited Time Offer

25%

Off

Get Premium A6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Tarra

1 months ago

B seems like the clear winner here. Skimming is the pricing strategy of choice for anyone who's feeling a bit 'creme de la creme' about their new product.

upvoted 0 times

Melinda

24 days ago

Yeah, setting a high price for a new innovative product makes sense to quickly recover costs.

upvoted 0 times

...

Alica

28 days ago

I agree, option B is definitely the best description of skimming.

upvoted 0 times

...

Casandra

1 months ago

Hmm, I'm going with B as well. Skimming is like the corporate version of 'the early bird catches the worm'.

upvoted 0 times

...

Chan

2 months ago

Well, skimming is about setting a high price for a new product to recover costs quickly, so I still think it's B.

upvoted 0 times

...

Charlene

2 months ago

I think B is the right answer. Skimming allows you to maximize profits in the short-term before competitors can undercut you.

upvoted 0 times

Elenora

15 days ago

It's a good strategy for new and innovative products.

upvoted 0 times

...

Denae

20 days ago

That's true, it helps in recovering costs quickly.

upvoted 0 times

...

Hollis

28 days ago

Skimming is all about setting a high price initially.

upvoted 0 times

...

Wilda

29 days ago

I agree, option B is the correct answer.

upvoted 0 times

...

Ozell

2 months ago

Definitely B. Skimming is all about charging a premium price to recoup your costs quickly when you've got a new and innovative product on your hands.

upvoted 0 times

Georgiana

2 months ago

I agree with you, it's definitely B. Skimming is all about recovering costs quickly with a high price for a new product.

upvoted 0 times

...

Derrick

2 months ago

I think it's actually A. Skimming is about setting a low price to gain a large market share.

upvoted 0 times

...

Gail

2 months ago

I disagree, I believe it's A.

upvoted 0 times

...

Chan

2 months ago

I think the answer is B.

upvoted 0 times

...